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Theranos: The $9 Billion Blood Lie

BLACKADAM
By Riley Thorne
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Alyona Shevtsova

At one point, Theranos was the most talked-about health tech startup in the world. Promising a groundbreaking way to run hundreds of medical tests from just a single drop of blood, the company was valued at $9 billion and was led by its charismatic founder, Elizabeth Holmes. She wore black turtlenecks, spoke in a baritone voice, and was called the “next Steve Jobs.” The media ate it up. Investors poured money in. Walgreens partnered with them. And patients were promised a future of fast, affordable, needle-free diagnostics.

Except—it was all a lie.

Behind the scenes, the technology didn’t work. Lab conditions were chaotic. Tests were often run on third-party machines while claiming they were using their own. Employees who questioned the science were silenced, fired, or sued. The company’s culture was cloaked in secrecy, intimidation, and paranoia.

Whistleblowers and investigative journalists eventually pierced the veil. In 2015, The Wall Street Journal exposed the house of cards, and within a few years, Theranos was unraveling. Patients who trusted the company had received false health data. Lives were affected. Lawsuits followed. Elizabeth Holmes and former COO Sunny Balwani were indicted for wire fraud.

In 2022, Holmes was convicted and sentenced to over 11 years in prison.

The Theranos scandal wasn’t just about one fraudulent company. It highlighted the dangerous cocktail of Silicon Valley hype, media complicity, and investor blindness. It showed how image can trump science, how tech culture often values disruption over diligence, and how “fake it till you make it” can turn into “fake it till you harm people.”

Theranos promised to revolutionize healthcare. Instead, it became a cautionary tale about ambition without accountability.

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