๐ A state of emergency in Ecuador
Plus: SEC's twitter hacker promotes Bitcoin
Hi Intriguer. When I read on Sunday that an Ecuadorian gang leader had disappeared from his prison cell, I immediately imagined an elaborate, years-in-the-making El Chapo-style escape via dirty laundry cart.
The reality is less meme-able but far more consequential. The prison break has ignited a horrible week of violence across Ecuador. We break down whatโs going on and why in todayโs top story.
My co-founder Helen actually became friendly with Ecuadorโs new president while at Harvard a few years back – weโll put out feelers for an interview to learn more about whatโs been happening there. Weโll keep you posted.
– John Fowler, Co-Founder
Was this forwarded to you? We're a team of ex-diplomats producing a concise and engaging geopolitical briefing for 85k+ leaders each day.ย Itโs free to subscribe.
TODAYโS NEWS
ICJ hears genocide case against Israel. South Africa brought the case to the UN court (which settles disputes between states), and accused Israel of genocide against Palestinians in its war in Gaza. Israel denies the allegations.
Security Council demands stop to Red Sea attacks. The UN Security Council passed a resolution demanding the Houthis โcease all attacksโ in the Red Sea, and noted the right of states to defend their vessels against hostilities. Four members, including China and Russia, abstained from the vote. In related news, an oil tanker previously embroiled in a US-Iran dispute was boarded by people in military-style uniforms off the coast of Oman and forced to divert towards Iran.
US presidential hopeful bows out. Former New Jersey Governor Chris Christie left the US presidential race on Wednesday, reducing the number of Republican candidates down to five. Two of them, former UN Ambassador Nikki Haley and Florida Governor Ron DeSantis, later traded jabs on stage at the last GOP debate before the Iowa caucus.
Somali rebels seize UN helicopter. A group of armed Ab-Shabaab fighters seized control of a UN helicopter forced to make an emergency landing in rebel-held territory. One passenger was killed, one is reported missing, whilst the remaining five are being held captive.
TOP STORY
What the heck is going on in Ecuador?
Escaped gang leader โFitoโ during his โbriefโ modelling career. Credits: Ecuadorian Armed Forces, 12 August 2023
Violence has erupted across Ecuador this week. At least 13 people have been killed, shops, schools and government offices are closed, and soldiers are patrolling the streets in several cities across the country.
President Daniel Noboa has declared a state of emergency, ordered a nationwide curfew and said that Ecuador was in a โstate of internal armed conflictโ.
Whatโs behind this sudden outbreak of violence?
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โFitoโ, the convicted head of the Los Choneros gang, escaped from prison in the countryโs largest city, Guayaquil, on Sunday. Since then, there have been reports of bomb explosions, gunfire, and looting across the country.
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Then, on Tuesday, armed gang members stormed the TC Televisiรณn studio, taking newsreaders and production staff hostage. The attack was captured live on air, and one gunman was overheard saying โdonโt mess with the mafias.โ (๐ช๐จ)
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At least 28 prison guards have been taken hostage since Sunday, including one who was forced at gunpoint to read out a statement saying, "You [President Noboa] declared a state of emergency. We declare police, civilians and soldiers to be the spoils of war."
Violence on this scale is a relatively new phenomenon in Ecuador. In Guayaquil – which is Ecuadorโs principal port and therefore, a drug trafficking hub – murders were up ~80% last year.
Corruption is also rife among Ecuadorโs police and prison system – analysts estimate that criminal gangs run one-quarter of the countryโs prisons.
In fact, the probable trigger for Fitoโs jailbreak and the subsequent gang violence was President Noboa's recent decision to move notorious inmates like Fito from their cells, where they have been orchestrating crimes, to a more secure prison.
The region is watching closely
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๐ต๐ชย Peru declared an emergency along its border with Ecuador and moved troops and police to reinforce it. Itโs worried that gang members might flee across the border from Ecuador.
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๐จ๐ดย Colombiaโs President Gustavo Petro expressed solidarity with Ecuador, saying his country would help however it could. Colombia is no stranger to drug cartel-related crime.
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๐บ๐ธย US: The US said it supports President Noboaโs efforts to tackle organised crime. Ecuadorians have been migrating to the US in record numbers recently – the US does not want a prolonged emergency situation that forces more Ecuadorians to head north.
INTRIGUEโS TAKE
At its core, this is a story about violent drug gangs fighting over large cocaine flows from the Americas to the insatiable markets of the US and Europe. President Noboa was elected in large part because he promised to use the military to end drug trafficking-related violence. But that approach isnโt a slam dunk.
In Mexico, a military crackdown created many smaller gangs, which has arguably worsened violence. A crackdown in El Salvador saw murder rates fall 70% last year, but human rights groups say the government has arbitrarily detained citizens, and tortured and killed prisoners.
Given this weekโs events, Ecuadorians understandably remain in favour of Noboaโs approach, so heโll get considerable freedom to respond forcefully during this โ60-day state of emergency.โ
Also worth noting:
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11 days before last yearโs presidential election, one of the candidates Fernando Villavicencio was assassinated. He had expressed a fear of the Los Choneros gang shortly before his death.
SUPPORTED BY FINANCE BUZZ
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Experts urge Americans to transfer their balances in 2024โฆ Some credit cards can actually help you get out of debt. By getting a new 0% intro APR credit card, no interest means you could pay off your debt faster. See the full list of cards here.ย
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MEANWHILE, ELSEWHEREโฆ

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๐จ๐ณย China: A Chinese state-backed institute says itโs found a way to identify the phone numbers and emails of users of Appleโs AirDrop feature, once thought to be a safe way to share files while avoiding the prying eyes of Beijing. AirDrop was widely used during Hong Kongโs 2019 protests.
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๐ต๐ฑย Poland: Two Polish MPs sentenced to prison for abuse of power were arrested on Tuesday in the presidential palace, where President Andrzej Duda had been protecting them. Itโs a dramatic escalation of the power struggle between Duda (loyal to the conservative Law and Justice Party) and the new Prime Minister Donald Tusk.ย
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๐ต๐ฌย Papua New Guinea: A peaceful demonstration by police and public servants in the capital, Port Moresby, escalated into looting, arson and violence on Wednesday. Prime Minister James Marape declared a state of emergency and authorised defence personnel to support the police in restoring order.ย
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๐ฆ๐ทย Argentina: Decemberโs inflation numbers were the highest since 1990 due to President Javier Milei's decision to devalue the peso by more than 50%. Milei acknowledged the price hikes, but argued they could have been worse.
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๐ฎ๐ถย Iraq: Iraqi Prime Minister Mohammed Shia al-Sudani told Reuters that his country is looking to negotiate a quick and orderly exit of US military forces from its soil. His comments come a day after a report claiming that Iraqi officials privately want the US military to remain.
EXTRA INTRIGUE
Hereโs what people around the world Googled yesterday:ย
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๐น๐ผ Folks in Taiwan googled โ็นๆฏๆโ (Tesla) after the EV giant launched its revamped Model 3 car, which will be available in Taiwan in the coming months.ย
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๐ท๐ด Romanians searched for โAdan Cantoโ after news broke of the Narcos actorโs passing.ย
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๐น๐ท People in Turkey looked for โPegasusโ following an announcement the air carrier was offering flights for โฌ11.ย
TWEET/X OF THE DAY

Did a social media intern jump the gun?
The above tweet on Tuesday was not actually sent by the Security and Exchange Commission (SEC). Chairman Gary Gensler announced the agencyโs official account was hacked, but not before a spike in the cryptocurrencyโs price.
In a plot twist, the SEC announced yesterday that it would approve the previously mentioned Bitcoin ETFs. Either a trigger-happy social media intern is getting fired, or someone wanted a little more time to load up on Bitcoin before the announcement became official.
DAILY POLL
How should other countries help Ecuador? |
Yesterdayโs poll: Should Ukraine negotiate with Russia to end the war?
๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ ๐ No, there's no negotiating with Putin (49%)
๐จ๐จ๐จ๐จโฌ๏ธโฌ๏ธ ๐ Yes, it's time (41%)
๐จโฌ๏ธโฌ๏ธโฌ๏ธโฌ๏ธโฌ๏ธ ๐ค Yes, but only under these termsโฆ (write in!) (8%)
โฌ๏ธโฌ๏ธโฌ๏ธโฌ๏ธโฌ๏ธโฌ๏ธ โ๏ธ Other (write in!) (2%)
Your two cents:
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๐ C.L: โIf Ukraine approaches Russia, I don't see any agreement that would end the war that doesn't involve Ukraine losing a decent chunk of territory. If you add that to the Crimea situation, it's going to set a really bad precedent, further consolidate Putin's powerโ
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๐ E.K.M: โWith Israel-Hamas putting a second military pressure on the world, Ukraine needs to secure what it can, and fast.โ
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๐คย S.A:ย Yes, but only under these conditions: โThat Russia gives back a major part of occupied Ukraine and signs a declaration of no attack in the future even if Ukraine joins NATO and EU.โ
โ๏ธ Corrections corner: In yesterdayโs edition, we mistakenly referred to Narendra Modi as Indiaโs President rather than Prime Minister – apologies! Droupadi Murmu is the President of India.



