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.
The UK has stopped sharing some intelligence with the US on suspected drug trafficking boats in the Caribbean following concerns over America’s strikes against the vessels.
The US has reported carrying out 14 strikes since September on boats near the Venezuelan coast.
The death toll from the US attacks in the Pacific and the Caribbean Sea has risen to more than 70, as the US escalates a military build-up in the Caribbean Sea.
Downing Street did not deny reporting by CNN that the UK is withholding intelligence from the US to avoid being complicit in US military strikes it believes may breach international law.
Britain, which controls several territories in the Caribbean where it bases intelligence assets, has long assisted the US in identifying vessels suspected of smuggling narcotics based on intelligence gathered in its overseas territories in the region.
The USS Gravely destroyer arrives to dock for military exercises in Port-of-Spain, Trinidad and Tobago on 26 October (AP Photo/Robert Taylor)
That information helped the US Coast Guard locate the ships, seize the drugs and detain their crews, CNN cited sources as saying.
But since the Trump administration started carrying out strikes on alleged drug trafficking boats in early September, UK officials have become concerned their intelligence may be used to acquire targets for the attacks they believe may be illegal.
The intelligence-sharing pause began more than a month ago, CNN reported, quoting sources as saying Britain shares UN’s human rights chief Volker Turk’s assessment that the strikes amount to extrajudicial killing.
The reports could provide an awkward backdrop for a meeting between Foreign Secretary Yvette Cooper and her US counterpart Marco Rubio, expected on Wednesday at the G7 foreign ministerial summit in Canada.
A Number 10 spokesman did not deny the move when asked about the pause in intelligence sharing.
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“We don’t comment on security or intelligence matters,” the official said in response to repeated questions.
“The US is our closest partner on defence, security and intelligence, but in line with a long-standing principle, I’m just not going to comment on intelligence matters.”
He added that “decisions on this are a matter for the US” and that “issues around whether or not anything is against international law is a matter for a competent international court, not for governments to determine”.
A Pentagon official told CNN the department “doesn’t talk about intelligence matters”.
On Monday, US secretary of war Pete Hegseth said on X that the previous day, “two lethal kinetic strikes were conducted on two vessels operated by Designated Terrorist Organizations”.
He said: “These vessels were known by our intelligence to be associated with illicit narcotics smuggling, were carrying narcotics, and were transiting along a known narco-trafficking transit route in the Eastern Pacific.
“Both strikes were conducted in international waters and 3 male narco-terrorists were aboard each vessel. All 6 were killed. No U.S. forces were harmed.”
The United Nations human rights chief has described the US strikes on alleged drug dealers off the coast of South America as “unacceptable” and a violation of international human rights law.
Venezuela says they are illegal, amount to murder and are aggression against the sovereign South American nation.
World
Hundreds of Russian troops roll into key frontline Ukrainian city ‘Mad Max-style’, video appears to show
Hundreds of Russian troops have pushed deeper into eastern Ukrainian cities ‘Mad Max-style’, video released by the Russians appears to show.
The troops were seen rolling through the fog on motorbikes, with some on the roofs of battered cars and vans, apparently into the city of Pokrovsk, as Russia said its forces had also pressed further into Kupiansk on Tuesday.
Ukraine has acknowledged the presence of the troops on its territory, although Reuters news agency says that when the video was shot is yet to be verified.
The fight to gain hold of Pokrovsk, a strategic point on a large road and rail artery in the Donetsk region, has been raging for well over a year, in Vladimir Putin’s push to gain control of the whole of Ukraine’s industrial east.
Situation on the battlefield
The Donbas region comprises the neighbouring regions of Luhansk and Donetsk.
Ukraine’s military said around 300 Russian soldiers were now inside Pokrovsk and that Moscow had intensified efforts to get more troops in over the past few days – using dense fog for cover from drones.
It said Ukrainian forces were fighting Russian groups in the city.
Russian soldiers enter Pokrovsk in this screen grab obtained from a social media video released on 10 November, 2025. Pic: Reuters
Moscow says taking Pokrovsk, dubbed “the gateway to Donetsk” by Russian media, would give it a platform to push north towards the two largest remaining Ukrainian-controlled cities in the Donetsk region – Kramatorsk and Sloviansk.
Posting on X on Tuesday, Ukraine’s President Volodymyr Zelenskyy said: “The front: our main focus right now is on the Pokrovsk direction and the Zaporizhzhia region, where the Russians are increasing the number and scale of assaults.
“The situation there remains difficult, in part because of weather conditions that favor the attacks. But we continue to destroy the occupier, and I thank every one of our units, every warrior involved in defending Ukraine’s positions.”
Destruction in Pokrovsk on 1 November. Pic: AP
Moscow and Kyiv have given different accounts of the battle for Pokrovsk. Moscow has for days said the city is surrounded, while Kyiv has denied Moscow controls the city and said on Monday that it was still able to supply neighbouring Myrnohrad.
Moscow has been threatening Pokrovsk for more than a year, attempting to surround it and threaten supply lines, rather than use the deadly frontal assaults it used to take the city of Bakhmut in 2023.
Russian war bloggers published a video on Tuesday showing what they said were Russian forces entering Pokrovsk along a road enveloped in fog, in what some Telegram users said looked like scenes from the Mad Max action film series, many of which are set in a post-apocalyptic landscape.
The date of the footage has not been independently verified.
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Satellite image shows armoured vehicles in the eastern Ukrainian city of Pokrovsk, Donetsk region, on 3 November, 2025. Pic: Reuters
Russia said it had taken 256 buildings and that Moscow’s forces were actively advancing to the northwest and east of Pokrovsk as well as around the railway station.
Russia has executed a pincer movement around the city and was close to closing it, open-source battlefield maps from both sides show, though Kyiv has counter-attacked around the town of Dobropillia.
Ukraine’s top military commander, Oleksandr Syrskyi, said in an interview with the New York Post that Russia was concentrating some 150,000 troops in a push to capture Pokrovsk, with mechanised groups and marine brigades forming part of this drive.
Russia said its forces had taken full control of the eastern part of Kupiansk in Ukraine’s Kharkiv region. A Russian commander, who gave his call sign as Hunter, said his troops had taken control of an oil depot on the eastern edge of Kupiansk.
In a video statement issued by Russia’s defence ministry, he said his forces had also taken control of a series of train stops along the railway to Kupiansk Vuzlovyi, a settlement around 6km (4 miles) south of the centre of Kupiansk itself.
Russia also said its troops had taken control of the settlement of Novouspenivske in the southeastern Zaporizhzhia region.
Ukraine withdrew from some villages, including Novouspenivske, due to intense attacks involving more than 400 artillery strikes per day, RBC-Ukraine news agency cited a military spokesperson as saying.
Russia’s military says it now controls more than 19% of Ukraine, or some 116,000 square km (44,800 square miles), up from 18% nearly three years ago, according to Ukrainian maps tracking frontline changes.
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