White lies circulating within gang (8)
I believe the answer is:
riesling
'white' is the definition.
(type of white wine)
'lies circulating within gang' is the wordplay.
'circulating' is an anagram indicator.
'within' indicates putting letters inside.
'gang' becomes 'ring' ('ring' can be a synonym of 'gang').
'lies' with letters rearranged gives 'iesl'.
'iesl' placed into 'ring' is 'RIESLING'.
(Other definitions for riesling that I've seen before include "German/Austrian wine" , "Gin riles the wine" , "Dry white wine (German)" , "Sir Ingle makes wine from this grape" , "Strange wine for Sir Ingle" .)