Dominique Strauss-Kahn is being questioned in connection with a prostitution ring, according to French Prosecutors.
The 62-year-old former IMF chief is being questioned in Lille, France, after police spoke to prostitutes who said they had had sex with DSK in 2010 and 2011. Police are looking into a suspected prostitution ring in the area.
The former French presidential hopeful has denied any wrong doing.
His lawyer Henri Leclerc said that he may not have been aware that the women he was having sex with were prostitutes. He told French radio in December: "He could easily not have known, because as you can imagine, at these kinds of parties you're not always dressed, and I challenge you to distinguish a naked prostitute from any other naked woman."
He had agreed to speak to police as a witness but was taken taken into custody by detectives. The BBC reports he could be held in custody for up to 48 hours.
DSK arrives at the police station, surrounded by media
The news comes less than a year after Strauss-Kahn was charged with raping maid Nafissato Diallo in a New York hotel. The charges were later dropped.
He has been quoted in the past saying he had a “horror of prostitutes and pimping."