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Looks like a guy in a hallowe'en mask to me. The lantern is visible first because the camera's in night vision and it's a source of light. Night vision is very sensitive to light sources... notice how everything around the lantern appears to be pitch black? My guess is it's in the guy's hand the whole time but the hand is washed out due to the light.
Also, while tall, he definitely doesn't look like he's over seven feet. That's not LeBron James coming out of the closet there, nor is it some otherworldly demon I reckon.
Colour me skeptic. The video's too grainy to really say anything conclusive and the story just doesn't seem to add up to me. Not convinced here.
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