Two members of the Bohemia ArmA development team have been arrested in Greece on suspicion of espionage it's alleged.

News ran rampant about the arrests overnight, with reports the two Czech developers had been taking photos and video of a military base on the island of Lemnos, likely for research purposes for ArmA 3, however, as the ordeal progressed and more information became available, Bohemia CEO Mark Spanel explained that they were simply on holiday.

"We can confirm that two Bohemia Interactive employees, our colleagues and friends, were arrested during their holiday trip to Lemnos," he said in a statement to Eurogamer.

"They visited the island with the sole purpose of experiencing the island's beautiful surroundings.

"Since its establishment in 1999, Bohemia Interactive has created games based only upon publicly available information. We always respect the law and we've never instructed anybody to violate the laws of any country. The same is true for ArmA 3.

"Currently, all our effort goes towards supporting the guys over there, as well as their friends and families affected by this difficult situation," Spanel concluded. "We sincerely hope that this is an unfortunate misunderstanding of their passion as artists and creators of virtual worlds."

A hearing for the two has been set for Wednesday or Thursday this week to determine if they will be charged with espionage or not. Stay tuned for more information as it becomes available.