Cherry AB has confirmed that its CEO Anders Holmgren is being investigated by the Swedish Economic Crime Authority on suspicion of insider trading.

The company’s Stockholm headquarters were searched on Tuesday morning in relation to the probe, with Holmgren arrested. Cherry AB and its subsidiaries XCaliber and Comeon have sizeable operational bases in Malta.

Industry publication Intergame reported that while the investigation progresses, Holmgren is being replaced by Gunnar Lind, chairman of the Cherry Audit Committee, as acting CEO of the Stockholm-listed firm.

“The Swedish Economic Crime Authority has performed a search at the head office of Cherry AB and in relation to this event, the company’s CEO, Anders Holmgren, was arrested,” a company statement read.

“Cherry will fully cooperate with the Economic Crime Authority in the investigation.”