[3] In recent years, Shwe Kokko has evolved into an organized crime and human trafficking hub, due to the Burmese government's limited reach and oversight in this remote area.

[4][5] Chinese-led development projects in Shwe Kokko, including Yatai New City, have been involved in illegal gambling, human trafficking, extortion, and cyber scam operations.

[17] Building Cities Beyond Blockchain and Yatai launched Fincy, a financial platform in Shwe Kokko, without the approval of Myanmar’s Central Bank or any government ministry.

[17] Yatai portrayed the development as a US$15 billion special economic zone (SEZ), aimed at becoming a playground for Chinese gamblers near the Burmese-Thai border.

[13] The Yatai project has been the subject of significant controversy, owing to concerns over the absence of official approval, illegal land confiscations, plans to build a casino, criminal activities, money laundering, and local sentiment.

[6][4][24][8] In April 2023, the Kawthoolei Army, a splinter group of the Karen National Union, launched an offensive against the Kayin State BGF in Shwe Kokko, forcing over 10,000 people to flee into Thailand.

[26] As Cambodia intensified its crackdown on illegal online gambling in 2019, Chinese crime syndicates and casino operators have found a new base in Myanmar's peripheral border areas.