Update: The FBI has issued a press release with more details on the arrests made so far. They name names and list all of the charges.
Original Story: The Federal Bureau of Investigation (FBI) has arrested three people believed to be part of the hacking group LulzSec, according to what an unnamed law enforcement official has told Reuters. According to that same source, charges will be made public against two more individuals. But the most shocking part of the story is that the group's alleged leader has been working with the FBI to cast a net on other members of the group.
LulzSec and Anonymous have taken credit for a number of hacking exploits and security breaches including (but not limited to) the website for PBS, The Escapist web site, Minecraft's servers, Eve Online's servers, and attacks against government and corporate entities such as the CIA, Britain's Serious Organized Crime Agency, Japan's Sony Corp, and the Mexican government.
A Fox News report claims that law enforcement in the U.S. and the U.K. have arrested at least three men and charged two others with conspiracy for their connections to the hacking group. The report notes that two of the men were from the U.K. (Ireland), while the other lives in Chicago.
According to that same report, much of this effort was facilitated by the cooperation of the group's leader: Hector Xavier Monsegur (AKA "Sabu")
"They caught him and he was secretly arrested and now works for the FBI," an unidentified source within the FBI told Fox News.
The Fox News report goes on to claim that the FBI arrested "Sabu" in June. After his arrest, the 28-year-old father of two and New York City resident decided to cut a deal and help the FBI catch other members of the group.