The U.S. has sanctioned two Chinese nationals based in the United Arab Emirates (UAE) and their front company for laundering millions of dollars in cryptocurrency stolen by North Korean cybercriminals to fund Pyongyang’s weapons programs.

The Office of Foreign Assets Control (OFAC) designated Lu Huaying and Zhang Jian for converting cryptocurrency into cash on behalf of Sim Hyon Sop, a previously sanctioned North Korean banking representative, the Treasury Department announced in a press release on Tuesday.

Between early 2022 and Sept. 2023, Lu laundered several million dollars’ worth of virtual funds from North Korean cyber heists and IT worker schemes