Jon Jones -- Busted for 'Drag Racing' ... Denies Allegations

More trouble for UFC superstar Jon Jones ... who just revealed he was busted for drag racing in New Mexico last week.

Jones revealed the incident moments ago on "The MMA Hour" with Ariel Helwani -- but adamantly denied drag racing.

TMZ Sports spoke with the Albuquerque PD -- and a rep told us Jones was pulled over late Thursday night/early Friday morning for drag tracing.

He was issued 5 citations -- the main was for drag racing. The other 4 citations were for "equipment issues" including a modified exhaust and an "issue" with his license plate.

The incident could be devastating for Jones -- who is already on probation for a hit and run conviction. He was recently warned not to get ANY citations.

Story developing ...