The controversial star, whose real name is Tia Emma Billinger, was reportedly arrested by authorities on Thursday, December 4.
This happened as she was in middle of touring Bali in her 'bang bus', visiting party hotspots and creating content with newly legal young men.
READ MORE: Porn star faces 15 years in Indonesian prison as outfits and lubricant seized
Her 'bang bus' was in Oxford on Sunday, September 21 as well as Monday, September 22, the seventh out of nine cities she visited during her UK travels which were specifically targeted at freshers (new first year students).
After being refused entry to Australia, she continued her tour in Bali which is part of Indonesia, a Muslim-majority country that has strict morality laws around the production, distribution and public display of pornographic material.
According to EuroNews, police have said that the controversial porn star and her team were allegedly creating "content containing pornographic or immoral elements".
Former OnlyFans actress Bonnie Blue (Image: Channel 4 / PA)
"It is suspected that the place was used by the alleged perpetrator to produce pornographic videos," said Badung police chief M Arif Batubara.
Among the items authorities said they seized were "school Bonnie Blue" outfits, cameras, condoms, flash drives, lubricant, pink necklaces, and two sheets of Viagra pills from the studio.
Although Ms Blue has since been released, her passport was seized and she has been transferred to immigration authorities for further questioning.
If she is convicted, she could face 15 years in prison and a fine of up to £270,000.
Yet, in the face of the sentence she has remained defiant according to the Daily Mail.
Bonnie Blue and her 'Bang Bus' in Brighton (Image: TikTok)
In a video seen by the paper, when asked if she planned on continuing to make her content, she said: "Subscribe and you'll find out".
The video shows Ms Blue walking into the Ngurah Rai Immigration Office in Jimbaran, south of Kuta.
She did not answer when asked if she would be returning to the UK but - according to the paper - confirmed that the "bang bus is over".
The arrest of Ms Blue has caused some to speak out and express their fears for her.
Her former friend, Annie Knight - dubbed Australia's most sexually active woman - told news.com.au that the development wasn't surprising.
She said: "You go to a country where sex work is illegal and you do sex work, you're going to get arrested."
However, she added that she hoped Ms Blue was "okay" adding: "Being arrested in another country must be a terrifying experience and I wouldn't wish it on anyone."