Army-run Myawaddy daily said the 122 arrests were made during a series of raids conducted by the military between January 2 and 4.
The daily and news agencies said the military also seized more than 400 logging trucks, pick-up trucks loaded with logs, stimulant drugs, raw opium and Chinese currency.
Reports said a logging permit signed by the Kachin Independence Army was found during the raids, which the military was said to have launched after conducting aerial surveys.
The KIA is the armed wing Kachin Independence Organisation, which is known to earn revenue from logs exported illegally to China.
Myanmar banned the export of logs in April in an attempt to reduce deforestation, but illegal logging has continued in remote border areas.
Government figures show that forest cover in Myanmar fell from 58 percent in 1990 to 47 percent in 2010.