The 57-year-old Nathaniel Glover was taken into custody in the Bronx on Wednesday.
Police say Glover got into a street dispute with a homeless man identified as a level 2 sex offender, on East 44th Street at Third Avenue.
During the fight, the homeless man was stabbed.
The 55-year-old homeless man was found lying on the sidewalk, and at first, witnesses thought he was drunk until they saw the stab wound.
He was taken to Bellevue Hospital where he was pronounced dead.
Police say Glover currently works in the area as a security guard. He is now facing a charge of second-degree murder.
Police say they have surveillance video that links him to the crime. He was arrested at his home in the Bronx.
Glover was one of the founding six members of Grandmaster Flash, considered one of the first popular hip hop groups.
The group started in the mid 1970s in New York and achieved mainstream success with their 1982 hit "The Message."
They disbanded in the late 1980s.
They were inducted into the Rock and Roll Hall of Fame in 2007.
Glover's website indicates he continues to occasionally perform and record videos and Grandmaster Flash performs reunion shows.