Curtis Warren, the man sometimes described as the 'British Pablo Escobar', was arrested at the home he shares with his girlfriend, a former prison officer.
His arrest comes less than seven months after he was released from prison with a strict list of conditions imposed on him by the National Crime Agency.
Warren was not banned from entering the city of Liverpool, as it was judged that it would constitute a 'possible human rights violation'.
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However, he was restricted to using only one phone with a single SIM card and one number, while he was banned from using Facebook Messenger, WhatsApp, investing in cryptocurrency and has his internet search history monitored.
He also had to allow his phone to be examined by law enforcement officials whenever they wanted, while not being allowed to carry more than £1,000 in cash and having all his transactions recorded.
Warren had once amassed a fortune close to £300 million during his criminal career, for which he spent many years behind bars.
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However, National Crime Agency officers yesterday (5 July) arrested him for allegedly breaching the terms of his Serious Crime Prevention Order.
Warren's former barrister Anthony Barraclough told the Daily Mirror that the 60-year-old was arrested at around 6am on Wednesday morning in Boldon Colliery, South Tyneside.
He said: "I can confirm that he was arrested at 6am this morning. Any breaches will be minor transgressions."
According to the Mirror, the location he was arrested at was the house he shared with his girlfriend Stephanie Smithwhite, a 44-year-old former prison officer who had herself been jailed for two years in 2020 for having a relationship with Warren while he was behind bars.
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Warren was released from prison in November, bringing an end to a 13-year sentence handed down after he was found guilty of conspiracy to smuggle cannabis.
He had previously been sentenced to 12 years in prison in 1996 after being caught possessing a large quantity of drugs, including cannabis, heroin, ecstasy and cocaine, in the Netherlands.
Guns, grenades, ammunition, gas canisters and cash were also discovered, and in 2001 his sentence was extended after he was found guilty of manslaughter after the death of another inmate in 1999.
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Breaching a Serious Crime Prevention Order has a maximum sentence of five years in prison, an unlimited fine or both punishments.
Warren has been bailed since his recent arrest after being questioned over alleged breaches of the order.
Joe Harker