The junta-aligned Karen State Border Guard Force (BGF) said it has blockaded the scam hub KK Park in Myawaddy Township.
The “new city” in the south of the township near Maw Hto Talay village is across the Moei River from Mae Ku in Thailand.
BGF spokesman Lieutenant Colonel Naing Maung Zaw told the media that the militia would raid KK Park after first clearing scam centers in Shwe Kokko and other parts of Myawaddy.
He said the BGF had ordered operations to stop and the businesses in KK Park were ready to cooperate.
A Maw Hto Talay villager said: “BGF troops are checking vehicles, targeting foreigners. KK Park is blocked off but some scam centers are probably still operating.”
The construction of KK Park began in March 2020. Operations started in 2021, becoming notorious for human trafficking, online fraud, forced labor and torture.
Escapees say it has casinos, hotels, restaurants, nightclubs, brothels and online centers that run romance scams and fraudulent investment schemes.
The Karen National Union (KNU) is widely believed to have developed KK Park with Huanya International Holding Group from China.
KNU defense chief Padoh Saw Roger Khin and current chairman Padoh Kwe Htoo Win attended the groundbreaking ceremony on February 10, 2020.
Hong Kong-based Trans-Asia International Group, a Huanya subsidiary, signed the land-lease agreement with Mulaei Alin Co of Myanmar for the KK Park project.
Mulaei Alin left the project in 2022 and was replaced by Trust Star Co Ltd of Myanmar, the KNU said.
Major Saw Tin Win of the KNU is reportedly involved in the scam hub.
The armed group was unavailable for comment.