Epstein pleaded guilty in 2007 to a reduced felony prostitution charge in Florida and registered as a sex offender.
His lead attorney, Jack Goldberger, declined comment.
His arrest, first reported by the Daily Beast, comes almost two weeks after the Justice Department announced that it would not throw out his 2008 non-prosecution agreement, even though a federal judge ruled it was illegal.
Epstein had always been the subject of accusations of paying young girls for sexual massages at his Palm Beach, Florida mansion.
He is expected to appear in court Monday, when the Southern District of NY prosecutor's office will unseal documents pertaining to accusations that he solicited or paid underage girls for sex at his NY and Palm Beach mansions, according to The Daily Beast, which first reported on his arrest.
News, the Miami Herald and The New York Times also reported on the arrest. S. Attorney Alex Acosta, now Trump's labor secretary, shelved a 53-page federal indictment that could have put Epstein behind bars for life. "Epstein will be charged with one count of sex trafficking of minors and one count of conspiracy to engage in sex trafficking of minors-which could put him away for a maximum of 45 years".
As a result of his conviction in 2008, Epstein is required to register as a sex offender.
Epstein was first investigated beginning in 2005 for alleged sex crimes against minor girls by both local and federal authorities in Florida. The Herald reported he was allowed work release privileges, which let him leave jail six days a week for 12 hours a day to work in an office he had set up. The court papers also allege that some of the girls, after being molested or sexually abused by Epstein, then became recruiters themselves.
The deal was also a non-prosecution agreement, essentially shutting down an Federal Bureau of Investigation probe into whether there were more victims and other powerful people who may have been involved, according to the Miami Herald.
Epstein has said that his encounters with alleged victims were consensual and that he believed they were 18 when they occurred.
In November, the Miami Herald reported that Acosta had brokered a deal with one of Epstein's attorneys. Acosta, now US Secretary of Labour, allegedly failed to clear the agreement with many of Epstein's 30 alleged victims, who said they would have opposed the 13-month sentence Epstein ultimately served.
Featuring prominently in the contact details was former US President Bill Clinton and members of his staff, for whom Epstein had a total of 21 numbers.
The victims of the "Epstein pedophile ring" were kept in the dark about the deal.