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Young Thug was arrested in Atlanta, Georgia on Monday.
According to reporters at local news outlet WSBTV, the Go Crazy artist was taken into custody as part of a 56-count indictment case associating him and 27 others with the street gang Young Slime Life (YSL).
Prosecutors claim YSL is affiliated with the Bloods gang, which was founded in Los Angeles.
Young Thug, born Jeffery Lamar Williams, is being held at Fulton County Jail on charges including conspiracy to violate the Racketeer-Influenced and Corrupt Organizations Act (RICO) and participation in criminal street gang activity.
The 30-year-old was named as a gang "founder" by prosecutors.
In addition, fellow rapper Gunna - also known as Sergio Giavanni Kitchens - is also under suspicion of one count of attempting to violate RICO.
Young Thug is set to make his first court appearance on Tuesday.