The graphic footage allegedly showed the man groping the little girl under the table, as she leaned against his lap.
Sickeningly, the man in the clip seems to continue having a conversation with the rest of his group as he touches the girl.
It rapidly spread online, sparking a nationwide manhunt seeking to track down the man and see him punished.
In the frantic search for the man's identity, names were thrown around wildly both by members of the public and even by internet activist group Anonymous.
But police have announced that they have now arrested the alleged perpetrator, who turned out to be the little girl's father.
Juan Vicente Hernandez Leon, 48, was seized as he attempted to catch a bus to Mexico City, the nation's capital.
His wife ,Ms Algomeda uploaded her video to Facebook, offering her defence of her husband.
She describes the suffering that having her daughter taken away from her has caused.
‘Do you think that the child would have been so calm if my husband had been touching her inappropriately? Of course she wouldn’t, the girl would have reacted.’She went on to claim that the little girl is suffering psychological damage for having been separated from her family.