Blood-Testing Firm Theranos Will Formally Dissolve, Report Says

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The company did not immediately respond to Ars' request for comment.

Theranos, most widely known for its fake blood testing devices which could run batteries of tests in mere moments, is now officially shutting it all down.

Holmes advertised the company as a cheaper and more efficient way for patients to test for life-threatening conditions, like cancer and diabetes, with just a few drops of blood from their fingers.

The Fortress Investment Group loaned $65 million to Theranos past year, with one condition being that Theranos maintain a cash level that has now been breached-hence the dissolution process that will play out over the coming months. But that unraveled spectacularly under the scrutiny of Wall Street Journal investigative reporter John Carreyrou. But her net worth was later revised down to nothing.

Theranos founder Elizabeth Holmes settled a shareholder lawsuit in July that was created to recover whatever can be salvaged from the firm, the Journal said.

In June, Holmes and the company's former president, Ramesh "Sunny" Balwani, were charged with federal criminal wire fraud charges.

Holmes, who was once considered a wunderkind of Silicon Valley, and Balwani were charged with conspiracy to commit wire fraud and nine counts of wire fraud each.

In March, US securities regulators accused the youthful entrepreneur of an "elaborate, years-long fraud". Each invested $100 million or more in Theranos-investments that are now worthless. "We are now out of time", Taylor wrote in the email, a copy of which was published by the WSJ (paywall).

The Silicon Valley firm will attempt to pay unsecured creditors its remaining cash in the coming months, the report said, adding that big name investors had lost about $1 billion.

He said the startup hopes to reach a settlement with Fortress that would allow it to distribute an estimated $5 million it has left in cash to other creditors.

Mr Taylor, who also serves as general counsel to the firm, said that Theranos had engaged the services of investment bank Jeffries to try to "maximise the value of the company" for shareholders.

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