Despite widespread acclaim, Theranos' technology, including its Edison device, never functioned effectively. In october 2015, Wall Street Journal reporter John Carreyrou revealed that Theranos had misrepresented the success of its blood-testing devices. The company was found to be using external machines for most of the blood tests it claimed to perform in-house.

One day after the article's publication, Theranos, under pressure from the U.S. Food and Drug Administration (FDA), ceased using its proprietary blood sample tubes, except for the previously FDA-approved herpes test. By late october, the FDA declared Theranos' small, branded sample tubes "unlicensed medical devices."

Initially, Elizabeth denied the Wall Street Journal's claims, stating on the Mad Money program, "This is what happens when you work to change things; first, they think you're crazy, then they fight you, and then suddenly you change the world."

One month after the report, a planned contract between Theranos and the Safeway supermarket chain was canceled. By december 2016, more reports emerged detailing Theranos' testing errors and non-compliance with health and safety regulations. Whistleblowers alleged that the company deceived patients and doctors about the efficacy of its blood tests, describing it as a "sophisticated, multi-year fraud" that defrauded investors and patients of hundreds of millions of USD.

In january 2016, the Centers for Medicare & Medicaid Services (CMS) declared Theranos' laboratory in Newark, California, failed to meet safety regulations in five different areas and posed an "immediate jeopardy to patient health and safety."

In june 2016, Walgreens announced the closure of all Theranos Wellness Centers within its stores and terminated its partnership with the startup. The FDA also prohibited Theranos from using its proprietary Nanotainer blood collection tubes.

The following month, the Wall Street Journal reported that CMS banned Elizabeth from owning or operating any blood testing facility for two years.

Then, in 2017, the state of Arizona sued Theranos to recover funds for customers who had paid for blood tests.

In june 2018, Elizabeth and Ramesh "Sunny" Balwani, Theranos' former president and Elizabeth's ex-boyfriend, were jointly charged with 11 counts of fraud.

The two were accused of lying to investors about the efficacy of Theranos' blood testing technology, using forged documents, exaggerating the company's financial success, and faking product demonstrations to secure funding. Elizabeth and Ramesh reportedly knew their machines had "accuracy and reliability" issues and could not compete with existing blood testing devices on the market.

Elizabeth resigned as Theranos' Chief Executive Officer before the indictment was unsealed. Theranos dissolved in late 2018. Elizabeth pleaded not guilty to all charges.

Elizabeth's trial, initially scheduled for mid-2020, faced multiple delays due to concerns about Covid-19 and Elizabeth's pregnancy. Elizabeth and her husband, Billy Evans, welcomed their first son in july 2021, two years after their marriage.

Elizabeth Holmes arrives at federal court in San Jose, California for her sentencing on 18/11/2022. Nytimes.

Elizabeth Holmes arrives at federal court in San Jose, California for her sentencing on 18/11/2022. Nytimes.

During the trial in late 2021, Elizabeth accused Ramesh of abusive, manipulative, and controlling behavior. She largely attributed Theranos' failure to her ex-boyfriend, claiming he impaired her judgment.

In court, doctors and patients testified that the blood tests developed and marketed by Elizabeth were a healthcare scam. One woman stated that test results indicated she had miscarried when she was actually pregnant; another patient was told he might have prostate cancer when he did not; a third received a false HIV diagnosis.

In january 2022, a jury convicted Elizabeth of three counts of fraud and one count of conspiracy to commit fraud. She was sentenced to 11 years and three months in federal prison and three years of probation.

Her sentence was later reduced to 9 years for good behavior. Elizabeth is expected to be released on 30/12/2031.

Ramesh's trial began two months after Elizabeth's conviction. The Pakistani businessman pleaded not guilty to all charges and denied Elizabeth's claims of coercion, manipulation, and abuse.

In july 2022, Ramesh was convicted of two counts of conspiracy to commit fraud, 6 counts of investor fraud, and 4 counts of patient fraud. He was sentenced to 12 years and 11 months in prison.

Elizabeth and Ramesh were ordered to pay 452 million USD in restitution.

Elizabeth Holmes, born in 1984 in Washington D.C., was raised by a mother who worked for a congressional committee and a father who was an executive at the energy company Enron.

With a strong academic record, Elizabeth enrolled at Stanford University in 2001, majoring in chemical engineering. However, she dropped out in march 2004 after working at the Singapore Genome Institute in summer 2003, stating her desire to start her own business.

Elizabeth's startup later became Theranos, aiming to revolutionize blood testing with its Edison device. Elizabeth and Theranos claimed their technology could perform comprehensive tests with just a few drops of blood, unlike traditional blood tests that required entire tubes.

Theranos secured an agreement with the retail pharmacy chain Walgreens to introduce its blood testing devices in stores. The U.S. Food and Drug Administration (FDA) approved Theranos for herpes virus testing.

Elizabeth's passion and determination made her a star in Silicon Valley. She became known for consistently wearing black turtlenecks, drawing comparisons to Steve Jobs, and her distinctive deep voice.

Elizabeth Holmes is the founder of Theranos. HBO.

Elizabeth Holmes is the founder of Theranos. HBO.

Theranos attracted prominent investors such as media mogul Rupert Murdoch, former Education Secretary Betsy DeVos, the billionaire Walton family, and Oracle co-founder Larry Ellison. The company's board of directors included former Secretary of State and National Security Advisor Henry Kissinger; former Secretary of State, Secretary of the Treasury, and Secretary of Labor George Shultz; and former Secretaries of Defense Bill Perry and James Mattis.

In fall 2014, Theranos was valued at 9 billion USD. Elizabeth became one of the richest women in America, owning a 50% stake in the company, according to Forbes.

In april 2023, Elizabeth appealed her sentence, calling it "unjust." She argued, "I refuse to plead guilty to crimes I did not commit. Theranos failed. But failure is not fraud."

She requested release on bail during her appeal, but the judge rejected it. Prosecutors accused Elizabeth of being a "flight risk," alleging she bought a one-way ticket to Mexico after her conviction to flee the country. Her appeal was rejected by the federal court in june 2024.

Elizabeth gave birth to her second child between her sentencing and filing her appeal. She began serving her sentence on 30/5/2023, at the Federal Prison Camp, a minimum-security women's facility in Bryan, Texas.

The prison allows Elizabeth to meet her family two times a week for a few hours each visit. They can walk in the prison yard and eat outdoors together. In february 2024, her parents, husband, and children visited Elizabeth for her 40th birthday.

"Being here is hell and torture," Elizabeth shared about her time in prison during a february 2025 interview.

"Every time I have to say goodbye to my husband and children, my world shatters. The people I love most have to leave while I stand here, a prisoner, feeling the harsh reality set in," Elizabeth said.

The now-penniless former billionaire recounted becoming accustomed to the dormitory-style prison routine. Each morning, she wakes up shortly after 5 am, eats fruit for breakfast, then exercises for 40 minutes with weights, rowing, and jogging.

Elizabeth Holmes smiles while lifting weights and jogging in the prison yard. Fox.

Elizabeth Holmes smiles while lifting weights and jogging in the prison yard. Fox.

At 8 am, Elizabeth reports to the education building, earning 31 cents an hour as a reintegration support worker. She helps women nearing release write resumes and prepare to apply for tax credits and other government benefits. Elizabeth also works as a paralegal and teaches french.

Regarding her plans after release, Elizabeth stated her "life's work" would be to draft the "American Freedom Act," a bill aimed at strengthening the principle of presumed innocence and improving criminal procedure.

To this day, Elizabeth maintains her innocence, though she vaguely admitted "there are things I should have done differently" on the path that led her to prison.

In january 2026, Elizabeth requested a pardon and early release from President Donald Trump. The White House has not commented on whether it intends to approve the request.

Elizabeth's story is chronicled in the 2018 book Bad Blood: Secrets and Lies in a Silicon Valley Startup and was adapted into the 2022 television series The Dropout, based on a podcast of the same name.