Russian tycoon Magomedov steps down from Virgin Hyperloop One board

FILE PHOTO: Ziyavudin Magomedov, the co-owner of Russia's Summa investment and trading group that was involved in construction of a soccer World Cup venue in Kaliningrad, attends a hearing on his detention at the Tverskoy District Court in Moscow, Russia March 31, 2018. REUTERS/Tatyana Makeyeva

MOSCOW (Reuters) - Russian tycoon Ziyavudin Magomedov, arrested on embezzlement charges, has stepped down from the board of Virgin Hyperloop One, a spokesman for the U.S. tech venture told Reuters.

Magomedov, who had invested in Virgin Hyperloop One through venture fund Caspian VC, was arrested in Russia in March on charges of embezzling more than $35 million. The businessman denies the charges.

“We can confirm Mr. Magomedov has not been a board member since May 16th. Caspian Ventures is still an investor and has representation on our board,” the spokesman said.

He added that Magomedov had not been co-executive chairman since 2017 when British billionaire and founder of the Virgin Group, Richard Branson, became the company’s sole chairman.

Virgin Hyperloop One develops super high-speed transportation systems. Magomedov’s company Summa declined to comment.

Reporting by Gleb Stolyarov; writing by Maria Kiselyova