Venezuelan opposition leader Juan Guaido, who has been recognized as interim president by the USA and more than 50 other countries, arrived for a session of the opposition-led National Assembly, as a bitter political standoff with President Nicolas Maduro continues.
The arrest risks further escalating tensions between the government of Nicolas Maduro and the USA, which along with more than 50 other countries has recognised National Assembly leader Juan Guaidó as Venezuela's legitimate president.
"We have no higher priority than the protection of USA citizens overseas", the State Department said in a statement. "Some banks - some foreign banks in particular - are being complicit in this behavior", the official said in an interview, declining to provide further details.
The move, which came a week after Venezuela deported a team from US television network Univision, drew condemnation from Organization of American States Secretary-General Luis Almagro and Florida Sen.
The United States and some 50 other countries have recognised Mr Guaido as the legitimate leader of Venezuela and have urged Mr Maduro, to resign so the country can prepare for elections.
Last week, Venezuela deported a team from USA television network Univision after anchor Jorge Ramos said authorities detained them at the presidential palace.
The German Ambassador to Venezuela, Daniel Kriener, has been ordered to leave the country having been declared "persona non grata" by the government. His assistant was also taken into custody. "Trump is waiting for any excuse to intervene", she went on to say, in reference to the persistent threats leveled by the White House since it threw its weight behind Maduro's ouster in late January.
Cody Weddle, who freelances for the Miami Herald, the Daily Telegraph and ABC News, has been out of contact since 8am when the raid took place and his equipment was confiscated, according to a press workers' union in Venezuela.
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His comments come after the Venezuelan government expelled the German ambassador, who welcomed the opposition leader at the Caracas airport on Monday.
According to witness accounts, the station said, a group of agents raided Weddle's Caracas home before forcing him into a black Jeep.
Guaido had flouted a court-imposed travel ban to visit other Latin American countries to drum up support.
The German foreign ministry in Berlin confirmed the expulsion order.
Florida Sen. Rick Scott also attacked Maduro on social media for Weddle's detention.
Attempts by Local 10 management to reach Weddle, 29, have proven unsuccessful.
Senator Rick Scott, a Florida Republican, wrote on Twitter that Weddle's arrest was unacceptable: "He must be released immediately and the US will not stand for this kind of intimidation!"