A 49 year old man was arrested on suspicion of drug offences when police executed a warrant in north Liverpool.
Police found large amount of suspected drugs at the man's home address in Anfield.
The man was arrested on suspicion of conspiracy to produce and supply ketamine. He is now in custody being questioned by detectives.
READ MORE: 'Amber' travel watchlist plans abandoned by Boris Johnson
Police said the arrest formed part of the investigation into the EncroChat network, which was used by criminal gangs.
Thirty one men have already been jailed after being identified through messages reviewed by Operation Aquarium, the Merseyside Police unit set up to analyse data linked to the region.
A police spokesman said: "We have arrested a 49 year old man on suspicion of conspiracy to produce and supply ketamine.
"The man was arrested this morning, Tuesday 3rd August, at his home address in Anfield.
"During a search a large quantity of what is believed to be controlled drugs were recovered and will be forensically examined.
"The man is currently in custody where he will be questioned by officers.
"If you have any information about suspected drug dealing in your area, please contact @MerPolCC, 101 or Crimestoppers anonymously on 0800 555 111. Always call 999 if a crime is in progress."
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
