The FBI and Australian police took the man into custody at his ex-wife's home in Louisville. Paul "Doug" Peters faces charges in Australia that include kidnapping and breaking and entering.
The arrest comes nearly two weeks after a masked man broke into a luxury home in Sydney, chained a device to an 18-year-old woman's neck and left a note in what police say was an extortion attempt.
The teen spent 10 hours chained to the fake bomb before she was freed. Investigators called it an extortion attempt.
Peters is an Australian citizen but has lived in the U.S., including Kentucky. His initial court appearance was set for Tuesday in Louisville and the extradition process will take about two months.
The Associated Press contributed to this report.