A U.S. Army soldier accused of using classified information to place winning bets on the operation that captured Venezuelan leader Nicolás Maduro is asking a federal judge to dismiss the case, arguing that prediction-market wagers are not prohibited by existing criminal law, Bloomberg reported.

Prosecutors allege the soldier had access to secret details about the planned U.S. operation and used that information to place bets on Polymarket predicting that Maduro would be removed from power and that American forces would enter Venezuela. The wagers allegedly generated substantial profits.

His attorneys argue that even assuming the government’s allegations are true, the conduct does not amount to a crime under the statutes cited by prosecutors. “A criminal court, not an internet exchange, governs bets,” the defense wrote, arguing that the case is built on an untested legal theory.

The soldier has pleaded not guilty to charges that include transferring proceeds allegedly connected to a crime and remains free on bond while the case proceeds. His lawyers contend that federal commodities laws aimed at illegal financial swaps do not clearly apply to political prediction-market wagers.

Prosecutors maintain that the bets were tied directly to classified military information obtained through the soldier’s position and that the profits were therefore unlawful. The dispute could become an important test of how existing laws apply to prediction markets when wagers are allegedly placed using government secrets.

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