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.
A man inside Mandalay has told Sky News bodies remain under “collapsed and inclining” buildings after the Myanmar earthquake – as a woman was freed from rubble after 91 hours.
The local inside Myanmar said many of the structures in the city were wrecked or badly damaged after the 7.7 magnitude quake on Friday, adding: “There are some bodies, some dead bodies, that still remain and other destruction”.
Meanwhile, in a televised address, Myanmar’s military leader Min Aung Hlaing said the number of dead had risen to 2,719 and is expected to exceed 3,000.
Some 4,521 people have been injured, while a further 441 are missing.
More than 10,000 buildings are known to have collapsed or been severely damaged in central and northwest Myanmar, the World Health Organisation said.
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Before and after: Myanmar earthquake
Smell of dead bodies near destroyed buildings
In Mandalay, Myanmar’s second-largest city, which was close to the quake’s epicentre, 50 children and two teachers were killed when their preschool collapsed, the United Nations said.
The local in the city told Sky News that “a lot of local assistance associations like charity groups are still struggling with digging out the corpses, the dead bodies, from the destruction”.
He said that “when we pass near the destructions, the collapsed building or very damaged building, we can smell” dead bodies.
“The smell of the dead bodies after four days… it still remains,” he said, before adding: “For the social assistance association… they need permission [to give aid] especially from the government.
“If they don’t have permission, then they cannot do anything.”
People sheltering in a makeshift tent camp in Mandalay. Pic: Reuters
He also said others in Mandalay are struggling after the earthquake, which followed the city being affected by cyclones, the COVID-19 pandemic, and the civil war in Myanmar – where a junta seized power in a coup in 2021.
“Some people, they say they have nothing at all,” the local added. “They have no more home, they have no more belongings, because its already damaged.”
Woman freed after 91 hours under rubble
It comes after the fire department in Myanmar’s capital freed a woman trapped under rubble 91 hours after the building collapsed.
The 63-year-old woman was freed early on Tuesday in Naypyidaw.
As the country continues to recover, a worker from the International Rescue Committee said people fear aftershocks and are sleeping outside on roads or in open fields.
Communities are struggling to meet basic needs such as access to clean water and sanitation, and emergency teams are working “tirelessly” to locate survivors and provide aid, the UN said in a report.
Rescue efforts have been complicated by the civil war, as rebel groups say the junta has conducted airstrikes, even after the quake, while NGOs fear that certain areas could be denied vital supplies.
“Myanmar’s military has a longstanding practice of denying aid to areas where groups who resist it are active,” said Joe Freeman, a researcher with Amnesty Myanmar.
“It must immediately allow unimpeded access to all humanitarian organisations and remove administrative barriers delaying needs assessments.”
Read more:
Military regime targeting ‘civilian areas’ in ‘wake of disaster’
Myanmar earthquake leaves some areas almost completely destroyed
The quake was the strongest to hit the southeast Asian country in more than a century.
In neighbouring Thailand, rescuers are still scouring the ruins of a collapsed, unfinished skyscraper for any signs of life.
“There are about 70 bodies underneath, and we hope by some miracle one or two are still alive,” volunteer rescue leader Bin Bunluerit said.
Six human-shaped figures have been detected by scanners, said Bangkok’s deputy governor, Tavida Kamolvej.
Thirteen deaths have been confirmed at the building site, with 74 people still missing, while Thailand’s national number of dead stands at 20.
The father of a paramedic killed by Israel in Gaza has told Sky News he would have been on the mission to rescue wounded colleagues, but was ill that day and so his son went instead.
“It was supposed to be me, you know. I was on duty that night but fell ill and sent him in my place.”
Speaking at his son’s funeral, Hassan Abu Hileh said Israel is to blame for the death of Mohammed and the other 14 men.
Hassan Abu Hileh’s son Mohammed was killed when Israeli forces said they ‘opened fire on suspicious vehicles’
“We need protection from the international community. We need protection for medical teams. We are medics-soldiers of duty, not armed fighters. We carry out humanitarian work. If I see someone who needs medical attention, I’m obligated to serve them,” he said.
The bodies of the Red Crescent and United Nations workers went missing around eight days ago. Despite repeated requests to search for them, all denied by the Israel Defence Forces (IDF), the UN eventually found 14 bodies buried under sand in a mass grave. One is still missing.
They were still wearing their uniforms.
Funerals took place on Monday for medics killed in Gaza. Pic: Reuters
The director of the Palestinian Red Crescent in Gaza has accused Israel of murdering the emergency workers. “We arrived at the scene of the crime to retrieve the bodies and found that all of them had been shot directly in the upper part of their bodies and buried,” said Dr Bashir Murad.
“The ambulances were also destroyed and buried.”
Dr Bashir Murad, director of the Palestinian Red Crescent in Gaza, said the workers had been shot
The bodies were found in sand in the south of the Gaza Strip in what Jonathan Whittall, Gaza head of the UN Office for the Coordination of Humanitarian Affairs, called a “mass grave”, marked with the emergency light from a crushed ambulance.
Mr Whittall posted pictures and video of Red Crescent teams digging in the sand for the bodies and workers laying them out on the ground, covered in plastic sheets.
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Bodies of aid workers found in Gaza
The Israel Defence Forces (IDF) has denied killing innocent medical workers and said Israeli forces opened fire on suspicious vehicles that were travelling without coordination and in an active combat zone.
“The IDF did not randomly attack an ambulance on March 23,” claimed a spokesman.
“Last Sunday, several uncoordinated vehicles were identified advancing suspiciously toward IDF troops without headlights or emergency signals. IDF troops then opened fire at the suspected vehicles.
“Earlier that day, cars that did not belong to terrorists were coordinated and passed safely on the same route.”
Read more from Sky News:
What happened to the ceasefire?
Anti-Hamas chants at Gaza protest
We have asked the IDF why the bodies were found in a mass grave but have received no comment.
More than 400 aid workers have been killed in Gaza since the start of the Israel-Hamas war, according to the UN.
According to the UN, at least 1,060 healthcare workers have been killed in the 18 months since Israel launched its offensive in Gaza after Hamas fighters stormed southern Israel on 7 October 2023.
The UN is reducing its international staff in Gaza by a third because of safety concerns.
China’s military has said it’s begun joint army, navy and rocket force exercises around Taiwan.
It said the exercises were intended to “serve as a stern warning and powerful deterrent against Taiwanese independence”, and called the self-governed island’s president a “parasite”.
China considers Taiwan to be its own territory and has threatened to use force to gain control.
A poster accompanying the drills titled ‘Closing In’. Pic: Eastern Theater Command
Its military released a poster entitled “Closing In”, showing Chinese ships and fighter jets circling the island and the words “sinister moves of Taiwan separatists courting disaster upon themselves”.
It comes after the Taiwanese president, President Lai Ching-Te, called China a “foreign hostile force” last month.
He announced measures including a proposal to re-instate a military court system in response to a perceived growth in Chinese infiltration of Taiwanese society and “grey-zone” tactics.
Announcing the joint exercises, China’s eastern theatre command depicted the president as a cartoon bug held by a pair of chopsticks above a burning Taiwan.
“Parasite poisoning Taiwan island. Parasite hollowing Island out. Parasite courting ultimate destruction,” the animation said.
Footage also showed the capital Taipei being aimed at from above and military vehicles patrolling the streets.
An image of Taiwan from above. Pic: Eastern Theatre Command/Reuters
The eastern theatre command said on its official WeChat social media account: “The focus is on exercises such as combat readiness patrols at sea and in the air, seizing comprehensive control, striking maritime and land targets and imposing blockade controls on key areas and routes.”
Taiwan’s defence ministry said China’s Shandong aircraft carrier group had entered its response area and it had tracked 19 Chinese navy vessels in the waters surrounding the island in a 24-hour period.
It said the group had dispatched military aircraft and ships and activated land-based missile systems in response.
“The Chinese Communist Party has continued to increase its military activities around Taiwan and in the Indo-Pacific
region… and has become the biggest ‘troublemaker’ in the international community,” the statement added.
The drills come two weeks after a large exercise in mid-March, when Beijing sent a large number of drones and ships towards the island.
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