DMX got himself into a sketchy situation Friday night.
He meet a young lady at Hollywood bar, and then invited her (along with a group of people) back to his hotel over in Orange County.
The girl disappeared during the room party -- and so did X's $30,000 watch.
So X's team called the Costa Mesa Police Department and they ended up finding the girl, who was in possession of the watch.
She was arrested and charged with theft. But she also leveled a charge of her own: So told the cops that X had sexually assaulted her.
X's people deny her accusation. They say there were were lots of witnesses in the hotel room, and X and the Ms. Sticky Hands didn't even hook up.
Police are investigating her allegations.