10,500 fake Labubu vape packages seized in $723K Medan counterfeit ring

For e-commerce and retail professionals, the Labubu vape bust is a stark warning: even the hottest collectible brands can be hijacked by sophisticated counterfeit operations that target unwitting consumers and online shoppers. With over 10,500 packages seized and profits exceeding S$723,000, this case shows how illicit actors are exploiting the emotional pull of pop-culture toys to sell potentially dangerous, unregulated vape products, creating a perfect storm for brand damage and liability.

In a striking case of transnational crime blending illicit narcotics, popular culture, and sophisticated money laundering, Indonesian police have arrested a Singaporean man suspected of heading a home-based vape production ring that used the brand of the wildly popular Labubu elf-like plush toys to market its products. The suspect, identified as TM, was apprehended on May 17, 2026, in a Medan hotel while arranging a shipment of raw materials, while his Indonesian accomplice, MWQ, was taken into custody the same day at the luxury residence in Kota Medan where the vapes were processed and packaged. The operation, which authorities say earned at least 10 billion rupiah (approximately S$723,800) since 2025, represents a dangerous convergence of drug trafficking, intellectual property infringement, and cross-border criminal logistics.

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The operation, which authorities say earned at least 10 billion rupiah (approximately S$723,800) since 2025, represents a dangerous convergence of drug trafficking, intellectual property infringement, and cross-border criminal logistics.

The Medan Police Narcotics Unit revealed that the production facility was protected by a multi-layer security system including facial and fingerprint recognition technology—an unusual feature for a clandestine drug lab that underscores the group’s sophistication and the premium placed on secrecy. The site, rented for an estimated five to seven million rupiah per month, served as the hub for processing raw materials shipped from China, overseen by TM from his residence in Thailand. The cross-border supply chain, spanning China, Thailand, Singapore, and Indonesia, illustrates the ease with which illicit networks exploit Southeast Asia’s porous borders and divergent regulatory regimes. The use of cryptocurrency to mask financial flows further complicates efforts to dismantle such operations, a tactic increasingly common in drug trafficking and illegal vape markets.

The choice of Labubu branding is particularly noteworthy. Labubu, a character created by Hong Kong artist Kasing Lung and manufactured by Chinese collectible toy giant Pop Mart, has become a global phenomenon among collectors and young consumers. By wrapping vape products—suspected to contain narcotics—in packaging bearing the beloved elf-like figure, the ring likely aimed to attract a younger, pop-culture-savvy demographic and to add a veneer of normalcy to an illegal product. This tactic mirrors a broader trend in counterfeit and grey-market goods, where popular IP is hijacked to lure unsuspecting buyers, simultaneously damaging legitimate brands and endangering public health. For Pop Mart and Labubu rights-holders, the case is a stark reminder that brand dilution and reputational harm can arise from the most unexpected criminal enterprises.

During the raid, police seized 862 vape cartridge tubes, dozens of vape bottles, and more than 10,500 vape packages branded with Labubu images—evidence of a substantial operation aimed at Medan and potentially beyond. A third suspect, said to have helped market the products, remains at large, indicating that the network may still be partly operational. The arrests come amid growing global concern over the rise of unauthorized vape products containing unregulated and often dangerous substances. Indonesia has its own strict laws against narcotics and unlicensed vaping products, but enforcement is often challenged by the sheer scale of the illicit market.

From a legal and regulatory perspective, this case highlights several critical issues. First, it demonstrates the increasing complexity of transnational drug trafficking, where production, management, and distribution are geographically dispersed, and digital currencies are employed to evade detection. Second, it raises questions about the capacity of Southeast Asian nations to cooperate effectively on cross-border investigations and extraditions—TM was based in Thailand, sourced materials from China, and operated in Indonesia. Third, the brazen use of trademarked IP for illegal narcotics packaging opens a rare avenue for brand owners to seek restitution or to collaborate with law enforcement in pressing criminal charges beyond simple trademark violation, possibly including money laundering and organized crime statutes. The fact that the production facility employed biometric security systems suggests a level of premeditation and technical investment rarely seen in such cases, potentially pointing to wider networks.