Prosecutors entered the former auto executive's Tokyo home early Thursday morning, and rearrested him on new allegations of financial misconduct.
The former chairman of Nissan (NSANF) and Renault (RNLSY) was released on bail in early March after spending 108 days in custody.
Prosecutors accuse Ghosn of using Nissan funds for personal use. They allege that from 2015 to 2018, Ghosn sent payments to an overseas dealer "for the purpose of self-interest," according to a statement from the Tokyo prosecutor's office. Nissan lost about $5 million as a result, the statement said.
One of the most prominent figures in the global auto industry, Ghosn is awaiting trial on separate charges he understated his income for years and abused his position by transferring personal investment losses to Nissan. He denies those charges.
"My arrest this morning is outrageous and arbitrary," Ghosn told CNN Business via a spokesperson. "It is part of another attempt by some individuals at Nissan to silence me by misleading the prosecutors. Why arrest me except to try to break me? I will not be broken. I am innocent of the groundless charges and accusations against me."
Ghosn's lawyer called the arrest an act of "hostage justice," according to Japanese public broadcaster NHK.
The arrest comes just a day after Ghosn took to Twitter, vowing to "tell the truth" behind his shocking downfall at a press conference next week.
Renault unveiled new allegations against Ghosn on Wednesday, claiming that expenses incurred by its former CEO and chairman involved "questionable and concealed practices" that violated its ethics rules. It also announced Ghosn's resignation from its board.
Ghosn's downfall and prolonged detention shocked the international car industry, created tensions between Nissan and Renault, and raised questions about Japan's criminal justice system.
Since Ghosn's first arrest in Tokyo on November 19, he has been ousted from his role as the head of Nissan, Renault and Mitsubishi Motors, which he had brought together to form the world's largest car-making alliance.
Nissan declined to comment on Ghosn's latest arrest. A spokesman referred CNN Business to an earlier statement claiming its own investigation into Ghosn "has uncovered substantial evidence of blatantly unethical conduct."
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