Shanghai police bust million-yuan Labubu doll scam disguised in a secret warehouse

In a dramatic twist that could rival a Netflix crime drama, Shanghai police have busted a major counterfeiting ring churning out fake Labubu plushies and trendy Crybaby figurines. These were not your run-of-the-mill knockoffs, they were 1:1 replicas marketed as premium toys but sold at a cheeky 60–70 percent of the original price.



Operating under the guise of an electronics and appliance store selling electric fans, speakers, and gaming consoles, the gang was secretly running a plushie piracy operation. Customers thought they were snagging genuine trendy toys, but in reality, they were hugging high-quality fakes. A warehouse beneath the company office was stacked with over 5,000 partially and fully packaged knockoffs, all mimicking trademarked designer products.


The operation came crashing down in March 2025 when a popular toy brand based in Xuhui district raised a red flag. A consumer flagged a suspiciously off toy bought online, prompting an authentication process that confirmed the item was not produced by any licensed manufacturer. That was all the cops needed to launch a full-scale investigation.



Investigators traced the shady e-store back to a man surnamed Wang, who appeared to sell electronics but was, in fact, the ringleader of the counterfeit toy empire. After gathering hard evidence, police raided his home and company on 4 July, arresting Wang and seven other suspects.


Turns out, Wang and his crew had been running the scheme since November 2024, lured by the exploding demand for designer toys like Labubu. They would buy real toys, reverse-engineer them into near-perfect copies, ship the components separately, and assemble everything in-house for resale. Police estimate their sales topped 12 million yuan ($1.67 million).



The main suspect is now in criminal detention for selling counterfeit trademarked goods, while the other seven face legal constraints. Authorities have confirmed all toys were counterfeit through sampling and testing. Investigations are ongoing into the manufacturers and other online sellers tangled in the counterfeit toy web.