The 41-year-old Arabov appeared in U.S. District Court in Manhattan on Friday to face charges of conspiring to launder over $270 million for Black Mafia Family or BMF, AllHipHop.com reported Friday.
He was released on $100,000 bond.
"The arrest of Mr. Arabov is the result of an unfortunate misunderstanding that we believe will be straightened out in the next several weeks," said his attorney, Benjamin Brafman.
Jacob the Jeweler's signature pieces have been featured in numerous magazines. He also does business with celebrities, including Angela Bassett, Sean "Diddy" Combs, Enrique Iglesias, Justin Timberlake, David and Victoria Beckham, Sir Elton John, Naomi Campbell, 50 Cent, Madonna and Sharon and Ozzy Osbourne.