Hungarian prosecutors have detained former central bank governor György Matolcsy, a close ally of ousted prime minister Viktor Orbán, who once called him his “right-hand man”.
The detention marks a significant escalation in Prime Minister Péter Magyar’s crackdown on alleged corruption under Orbán, whose 16 years in power were marked by accusations of state capture. Matolcsy was taken into custody early on Wednesday alongside several other people and was expected to be questioned later in the day, his lawyer Pál Bátki confirmed.
“My client is suspected of the felony of economic fraud causing substantial financial loss and the misdemeanour of using a forged private document,” Bátki said. He did not comment further on the charges.
Matolcsy is the most senior figure from the former government to be detained since Magyar took power in May. He was the chief architect of “Orbanomics”, the economic model built on state intervention, heavy taxes on foreign companies and the cultivation of a loyal business elite. He served as Orbán’s economy minister from 2010 before heading the central bank from 2013 to 2025.
Two former ministers and several businessmen close to Orbán have also been arrested, while his former anti-terrorism chief faces allegations. The moves are part of a sweeping anti-corruption campaign dubbed “Operation Cleansing Fire” by Magyar. The PM has also set up new anti-corruption authorities, replacing prosecution leaders and expanding the powers of existing institutions.
Prosecutors said in a statement on Wednesday that they were “conducting co-ordinated investigative operations . . . into the felony of breach of fiduciary duty” at the central bank.
Under Matolcsy, the central bank invested more than €1.5bn in proceeds from a foreign-exchange conversion scheme that benefited several close associates, including his son, according to investigations by the State Audit Office and the bank itself. Matolcsy and his son have denied wrongdoing. They did not respond to requests for comment.
Matolcsy remained in custody on Wednesday pending a court decision on his arrest. Hungarian police issued an arrest warrant for his son Ádám and an associate for “economic fraud”.
Orbán’s Fidesz party said it expected “authorities to conduct the proceedings impartially, free from political pressure”, stressing the presumption of innocence and the right to a fair trial.
Speaking to loyalists at an event last weekend, Orbán said he was the main target of the new government, adding the former Fidesz officials and businessmen have been detained to “get me”.
“They are hunting for me, searching for the path that leads to me,” Orbán said. “They are shooting at me with bazookas. All [those arrested] have to say is I made them do it, and they would be free to leave, while I am detained.”
Investigations are ongoing about a suspected unlawful capture of a Ukrainian money convoy in March and whether Orbán ordered it. If ultimately charged and found guilty, the former premier could face several years in prison. He has dismissed the case as a political witch-hunt.