"[It's] is a big deal," said Mikko Hypponen, chief research officer at security firm F-Secure. "According to our statistics, Paunch has been the biggest provider of exploit packs for the past two years."
Blackhole and the Cool Exploit Kit, both from Paunch, have fueled an underground economy in recent years, Hypponen said. "Now that Paunch is off the market, we're probably going to see a fight on who will take his place."
Graham Cluley, an independent security research called the arrest "a coup for cybercrime-fighting authorities. [It] disrupts the development of one of the most notorious exploit kits the web has ever seen," he said.
That said, Cluley predicts that it's only a matter of time before another powerful exploit takes its place, he noted.
Several other exploit kits, including the Whitehole Exploit Kit, Sweet Orange Exploit Kit and the Redkit Exploit kit, are already been jostling for the attention of top hackers in the cyber underground.