Elizabeth Holmes: How Theranos founder went from billionaire darling of Silicon Valley to the brink of prison
“Don’t worry about the future, we’re in good hands.”
So said former US president Bill Clinton in 2015, as he introduced Elizabeth Holmes to an adoring New York crowd.
It seemed an uncontroversial statement at the time, as he hailed the achievements of a woman who had become America’s youngest self-made female billionaire after taking Silicon Valley by storm.
A hub for the world’s biggest tech companies, the only thing more synonymous with this infamous stretch of northern California than scientific breakthroughs and innovative gadgets were the rich white men who were invariably behind them – turtleneck jumpers and smart trouser-sneaker combos in tow.
Bill Clinton and Elizabeth Holmes at the Clinton Global Initiative’s 2015 meeting in New York
Holmes – a high school computer whizz turned Harvard dropout – was a bona fide gatecrasher, her stunning rise to the cover of Forbes magazine powered by her founding health technology firm Theranos and its rapid ascent to a peak valuation of $9bn. Look back on what it was promising to deliver, and it’s easy to see why.
Revolutionary blood tests were at the heart of its pitch, ones which could be performed at phenomenal speed with merely a small drop required – and no needles.
Holmes’s catchphrase became “change the world”, such were her assertions that the equipment her company had developed could test for dozens of diseases in one fell swoop.
She insisted it would change healthcare in the US, not just by speeding up and streamlining trips to the doctor, but by eventually rendering such visits obsolete by selling the gizmos in stores.
It took more than a decade for such claims to be exposed as the stuff of science-fiction, but Holmes’s shameless willingness to talk the talk regardless helped her become one of the darlings of Silicon Valley, raising hundreds of millions from investors and venture capitalists.
As Theranos grew, her public image was crafted to perfection to make her the perfect face of one of America’s most exciting companies, famously adopting the aforementioned turtlenecks from her idol Steve Jobs, the late Apple founder, and speaking in a strikingly deep voice which added extra gravitas to her every word.
Fame isn’t for everyone, but for Holmes it seemed elementary.
Nothing, it seemed, could go wrong. Until it did. Big time.
Theranos reached a value of $9bn
How the lie was exposed
Holmes’s empire began to unravel upon the publication of a bombshell expose by The Wall Street Journal, which reported that Theranos’s technology was profoundly flawed.
The devices used to collect people’s blood, which the firm dubbed “nanotainers”, were said to be so far off the mark that Theranos had in fact been using other companies’ equipment to carry out blood tests in its laboratories.
The most distressing piece of the Journal’s report was that the company’s ex-chief scientist, Briton Ian Gibbons, had tried to take his own life after telling his wife the tech did not work. He died shortly after from liver failure.
The stories emerged just a month after Holmes had shared the stage with Bill Clinton.
Silicon Valley is home to some of the biggest names in tech
As described by Sky’s Ian King when Theranos went bust in 2018, three years after the Journal’s report, key to the company keeping the wool fixed firmly over the public’s eyes until then had been an almost cult-like culture among its executives and staff, and one of extreme secrecy.
Neither are unique to Silicon Valley – some of the big tech personalties who have emerged over the years remain an odd focus of worship in some corners of the internet – but rarely have they combined to such destructive effect.
The journalist who broke the story, John Carreyrou, has since written a book on the scandal called Bad Blood, which stands to be turned into a feature film. There’s perhaps a cruel irony that it’s being produced by Apple, the company whose late co-founder was a source of such inspiration for Holmes.
Her rise and fall also inspired a hit podcast series called The Dropout, and a subsequent Hulu series of the same name starring Amanda Seyfried.
The show presents Holmes as a brave, smart, single-minded young woman determined to succeed, and she is initially easy to root for. As Apple designer Ana Arriola tells Holmes in a scene when she attempts to recruit her following the launch of the first iPhone: “Honestly, it’s just really exciting to me that you’re a young female CEO, instead of a cocky little boy in a sweatshirt.”
But Holmes’s goal of becoming a wealthy star of the biotech scene quickly overcomes all other instincts – including a willingness to tell the truth.
It’s a trait that left some staff feeling deeply uneasy, not just Gibbons and Arriola, who describes her time at Theranos on her LinkedIn page as “altruism through corrupt unethical science-fiction”.
Amanda Seyfried as Holmes in The Dropout: Pic Disney+
How a life unravelled
Carreyrou’s revelations, which Holmes has admitted trying to silence, sparked investigations by medical and financial regulators in the US. In a development which would once have been unthinkable, the now 34-year-old was facing criminal charges in 2018.
She and the president of Theranos, ex-lover Romesh Balwani (who she has since accused of sexual assault), were accused of engaging “in a multi-million-dollar scheme to defraud investors, a separate scheme to defraud doctors and patients”, and each faced two counts of conspiracy to commit wire fraud and nine counts of wire fraud.
Former Theranos president Ramesh Balwani
Among those defrauded investors were the likes of Rupert Murdoch and the American pharmacy giant Walgreens, while similarly big names had been attracted to Theranos’s board of directors.
Among them were former secretaries of state Henry Kissinger and George Shultz, and an ex-director of the US Centers for Disease Control.
All of them had been hoodwinked by Holmes, who had founded Theranos aged just 18 and quickly learned how to tell her backers exactly what they wanted – and she needed them – to hear.
As Eric Jackson, a startup founder and author of The PayPal Wars, put it to Sky News: “There is almost endemic to the system a need to, I don’t want to say exaggerate, but to tell a narrative that’s compelling to investors. At a certain point hype does have to be in line with credibility, if not you’re in an instance of good old-fashioned fraud.”
Whether it was a matter of delusion, falling victim to the treacherous “fake it ’til you make it” culture that permeates American startups, or something more sinister, Holmes maintained during her trial that she initially believed her company’s purportedly revolutionary blood tests were real.
“I wanted to convey the impact the company could make for people and for health care,” she told the court of her meetings with investors.
To prosecutors, such assertions were the consequence of a woman who was “out of time and out of money”.
Having launched her company by repurposing family funds meant for her Harvard degree, taking it mainstream meant doing whatever it took to attract her big time investors and venture capitalists.
The once-enamoured former US secretary of defence Jim Mattis, who joined the company board, told the trial: “There just came a point when I didn’t know what to believe about Theranos any more.”
Holmes arrives for a hearing in San Jose in 2019
‘She chose lies when we needed truth’
Holmes’s sentencing on Friday comes after she was convicted of fraud earlier this year, her years-long scam having failed to move the jury as it had done her backers.
After a case which gripped the world, just as her rise to fame had done, US federal prosecutors want the judge to jail her for 15 years, a term considered appropriate for “one of the most substantial white collar offences Silicon Valley or any other district has seen”.
Balwani has been left waiting until next month for his sentencing, having also been convicted of multiple fraud counts during a separate trial.
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In a 46-page brief last week, assistant US attorney Robert S Leach wrote of Holmes: “She repeatedly chose lies, hype, and the prospect of billions of dollars over patient safety and fair dealing with investors.
“Elizabeth Holmes’ crimes were not failing, they were lying – lying in the most serious context, where everyone needed her to tell the truth.”
A counter document from Holmes’s attorneys, totalling 82 pages, insisted her reputation had been permanently and unfairly destroyed, given it had turned her into a “caricature to be mocked and vilified”.
They are appealing for a sentence of no more than 18 months.
More than 130 friends, family, former investors and employees have also submitted letters to the judge, Edward Davila of San Jose, California, to appeal for leniency.
Senator Cory Booker used his to hail Holmes, still only 38, as someone who “can, despite mistakes, make the world a better place”.
Whether that’s true or not, she won’t be able to from behind bars.
Sean “Diddy” Combs has been found guilty of transportation for prostitution following a landmark trial in New York – but cleared of more serious charges of sex trafficking and racketeering conspiracy.
The hip-hop mogul was accused by prosecutors of abusing and coercing three alleged victims, including his former long-term partner, singer and model Cassie Ventura, and other crimes including kidnapping, arson and blackmail.
Jurors decided not all the allegations were proven – but Combs still faces several years in prison after being convicted of transporting people across the US, including Cassie and another former girlfriend “Jane”, and paying male escorts to engage in sexual encounters.
However, with the not guilty verdict on three other more serious charges – racketeering conspiracy and two of sex trafficking – the 55-year-old has avoided a maximum possible sentence of life behind bars.
Despite a request by his defence team, he was denied bail ahead of sentencing – which has been scheduled for Friday 3 October.
Combs appeared upbeat in court as the verdict was announced. Pic: Jane Rosenberg/ Reuters
Marc Agnifilo, part of Diddy’s defence team, described the ruling as “a victory of all victories”.
Outside the courthouse, he said the jury “got the situation right, or certainly right enough”.
Another of his lawyers, Nicole Westmoreland, said: “He actually battled for his freedom, for his innocence, and he did it.
“And, you know, a lot of times, people are too afraid to do it. Today is a major win to show what the system can do.”
The mixed result from the jury came not long into their third day of deliberations. In the courtroom in Manhattan, there were cheers from Combs’s family – and the rapper himself held his hands up in a prayer motion, looking at the jury, and hugged his defence lawyer Teny Geragos.
His mood seemed very different to just a day earlier – when he learned the jury had reached a verdict on four of the five charges, but were split on the racketeering charge.
After deliberating for longer on Wednesday, they came to a unanimous decision.
As the verdict sunk in, Combs appeared overwhelmed, kneeling at his chair and bowing his head in prayer once again.
“I’ll be home soon,” he said as he faced his family members. “I love you, Mum.”
Combs later seemed to become overwhelmed with relief. Pic: Jane Rosenberg/ Reuters
The application for bail
Combs’s defence team argued that as he had been cleared of the most serious charges, he should be bailed ahead of sentencing.
His lawyer Marc Agnifilo said he had been a model prisoner and added: “He’s not going to flee. He’s been given his life back.”
But prosecutor Maurene Comey argued Combs had a history of violence, which Judge Arub Subramanian agreed with. “At trial, the defence conceded the defendant’s violence in his personal relationships,” he said.
After being denied bail, Combs attempted get the judge’s attention – but after consulting with Mr Agnifilo, he did not speak.
Casandra ‘Cassie’ was heavily pregnant when she gave evidence at the start of the trial. Pic: Jane Rosenberg/ Reuters
Cassie ‘paved the way’
Reacting to the verdict, Cassie’s lawyer Douglas H Wigdor said that although jurors did not find Combs guilty of sex-trafficking Cassie, she had “paved the way” for the other guilty verdicts.
“By coming forward with her experience, Cassie has left an indelible mark on both the entertainment industry and the fight for justice,” he said.
“We must repeat – with no reservation – that we believe and support our client, who showed exemplary courage throughout this trial.”
Cassie, who testified heavily pregnant just three weeks before giving birth, displayed “unquestionable strength”, he added, and “brought attention to the realities of powerful men in our orbit”.
Videos of “freak off” sex sessions with male escorts were shown to jurors only during the seven-week trial, with the footage kept private from members of the public and media in court.
Read more:
How the trial unfolded
The rise and fall of Sean ‘Diddy’ Combs
Pic: Reuters/ Jane Rosenberg
Former employees, along with escorts, hotel staff and police officers were among those to give evidence.
Cassie and Jane, who used a pseudonym, also testified. They told the court they were coerced into drug-fuelled “freak offs” – which were also referred to as “hotel nights” or “wild king nights” – with male escorts, and abused throughout their relationships.
Combs’s defence team presented a very different picture to show that sexual acts, including freak offs, were consensual.
They conceded the music star could be violent, had a bad temper and used drugs. He also had multiple relationships at the same time. But crucially, they said, while he was “not proud” of some of his behaviour, none of it made him guilty of the charges against him.
After hearing evidence of flights and travel for escorts and Cassie and Jane, paid for by Combs, as well as hotel bookings across the US and the Caribbean, jurors found him guilty of the transportation to engage in prostitution charges. However, they did not find that the allegations against the rapper amounted to sex trafficking or racketeering.
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CCTV footage shows Diddy ‘attacking’ Cassie in hotel
The Cassie hotel tape
Combs, known variously as Puff Daddy, P Diddy, and Diddy over the years, was once one of the most influential figures in hip-hop – famous as a producer, founder of Bad Boy Records and manager of the late Notorious BIG in the 1990s, as well as a rapper in his own right.
As an artist, he won three Grammys during his career, and had hits including I’ll Be Missing You, Come With Me, and Bad Boy For Life.
In September 2023, he received the “global icon” award from MTV and was given the key to New York City at a ceremony in Times Square, just a few miles away from the streets in Harlem where he spent his first years.
Allegations first came to prominence in November 2023, when Cassie filed a bombshell lawsuit accusing him of coercing her into unwanted sex sessions, as well as blackmail and several incidences of violence.
The suit was settled in 24 hours – for $20m, it emerged during the trial – but months later CNN aired hotel security footage showing Combs punching and kicking Cassie and throwing her to the floor in 2016.
He apologised after the video aired, saying: “I was disgusted when I did it.”
Footage from the hotel incident was shown during the trial.
Following the verdict, the rapper now awaits sentencing. He also still faces several civil lawsuits, most of which were filed in the wake of his arrest in September 2024.
A man has pleaded guilty to murdering four University of Idaho students in November 2022.
Bryan Kohberger, a 30-year-old former criminal justice student, was arrested at his parents’ home in Pennsylvania weeks after the killings.
He was accused of sneaking into the rented home in Moscow, Idaho, which is not far from the university campus, and attacking Ethan Chapin, Xana Kernodle, Madison Mogen and Kaylee Goncalves.
Kohberger previously pleaded not guilty to charges of murder and burglary.
It comes after he agreed to a plea deal, just weeks before his trial was set to begin, in a bid to avoid the death penalty.
Read more:
Surviving Idaho student ‘saw masked man in black clothing’
Idaho suspect ‘warned after making creepy comments’
Bryan Kohberger during a hearing in Latah County District Court in Moscow, Idaho. Pic: Reuters
Kaylee Goncalves, Maddie Mogen and Xana Kernodle, and Xana’s boyfriend Ethan Chapin
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It is certainly big – 940 pages long – but on the question of beauty, Congress is divided.
Donald Trump’s “big, beautiful bill” has sparked ugly debate – both for its ambitious scope and for the political manoeuvring that’s gone on around it.
Elon Musk branded it “political suicide” for Republicans and threatened to fund challenges against those who back it in next year’s midterm elections.
But the president hit back, suggesting he would consider cutting Musk’s lucrative government contracts or even deporting him back to South Africa.
The “big, beautiful bill”, or HR 1 to give the proposed legislation its proper title, is Mr Trump’s signature spending and tax policy.
It extends tax cuts he secured in 2017 and bankrolls his second-term agenda in the White House.
File pic: Reuters
Here is a summary of the key points:
• Permanent tax cuts: Extending relief from the 2017 Tax Cuts and Jobs Act
• Small business support: Doubling the small business expensing limit to $2.5m (£1.8m) to help businesses expand and hire staff
• Child tax credit: Expanding the child tax credit and making it permanent, benefiting 40 million families
• Making housing affordable: Expanding the low-income housing tax credit to kickstart construction of affordable homes
• Defence and border security: Allocating $170bn (£123bn) for border security alone, including $46bn (£33bn) for completing the border wall
• Made-in-America incentives: Providing tax breaks and incentives for domestic manufacturing to promote US industry
• Healthcare and social welfare: Implementing restrictions on Medicaid, which provides healthcare for millions of Americans, and reducing funding for certain healthcare and nutrition programmes.
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Clash over ‘monster’ debt bill
Musk, Mr Trump’s former ally and the man who established the Department of Government Efficiency (DOGE), claimed the bill “raises the debt ceiling by $5trn, the biggest increase in history.”
“DOGE is the monster that might have to go back and eat Elon,” was President Trump’s response.
The national debt currently stands at $37trn (£27trn) and the Congressional Budget Office (CBO) estimates that the bill could add $2.4trn (£1.7trn) to that over the next decade.
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Trump threatens to ‘put DOGE’ on Musk
Bill splits Republican ranks
Republican Senator Thom Tillis voted against the bill and, following criticism from the president, announced he would not seek re-election in North Carolina.
He said he couldn’t support it due to his concerns about the impact cuts to Medicaid would have on people in his state.
Democrats in the Senate forced a full reading of all 940 pages and then a vote-a-rama, a series of marathon voting sessions.
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In the House of Representatives, it passed by a single vote, 215-214. In the Senate, Vice President JD Vance, had to cast the deciding vote to break a tie (50-50).
Legislatively, the progress of the bill has been a case study in the complexities of American law-making.
Strategically, it represents a mammoth effort to consolidate the president’s policy agenda and secure his legacy.
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