Lebanon's former central bank governor, Riad Salameh, was arrested during a judicial hearing in Beirut on Tuesday, according to judicial sources.

Salameh faces a range of serious allegations, including money laundering, embezzlement, and illicit enrichment, all of which he denies.

The arrest marks Salameh's first appearance before Lebanon's judiciary since he left his post in July 2023.

Despite his past acclaim for maintaining the Lebanese pound’s stability until 2019, Salameh now faces severe legal consequences as he confronts allegations of operating the largest Ponzi scheme in history and being labeled "the world’s worst central banker."

For three hours, he was questioned about accusations that he embezzled over USD 40 million through commissions linked to the central bank's transactions with Lebanese brokerage firm Optimum Invest between 2015 and 2018.

The firm was involved in trading treasury bonds and certificates of deposit with rapid turnovers, generating substantial profits.

Judicial authorities allege that Salameh accumulated more than USD 110 million through financial misconduct involving Optimum Invest.

This investigation is part of a broader scrutiny of Salameh’s financial dealings, which have come under intense international scrutiny since Lebanon's economic crisis began in 2019.

His tenure is now associated with allegations of corruption and mismanagement, which have been corroborated by various international investigations.

European nations, including France and Germany, had previously issued arrest warrants for Salameh, although Germany’s warrant was rescinded in June due to procedural errors.

In 2023, the US, the UK, and Canada imposed sanctions on Salameh, accusing him of corrupt practices designed to enrich himself and his associates.

The former governor, recognized as the longest-serving central bank chief globally, will remain in custody for four days before his case is handed over to the Beirut public prosecutor.