[Asia Economy Reporter Seulgina Jo] Elizabeth Holmes, the founder of the biotechnology company Theranos, which rose as the "Cinderella" of Silicon Valley in the United States but fell due to fraud charges, was found guilty in a criminal trial on the 3rd (local time).
According to local media such as CNBC, on that day, a jury of 12 at the San Jose District Court in California found Holmes guilty on 4 of the 11 charges brought against her. Based on the jury's verdict, Judge Elizabeth Davila of the U.S. District Court will set the sentencing date and determine the final sentence.
Born in 1984, Holmes dropped out of Stanford University in the U.S. and founded the startup Theranos at the age of 19, rising as the Cinderella of Silicon Valley. She attracted more than $900 million from investors including media mogul Rupert Murdoch by promoting technology that could diagnose over 250 diseases with a single drop of blood, and in 2015, Theranos's valuation soared to $9 billion. She was nicknamed the "female Jobs" as she appeared in public wearing a black turtleneck like Steve Jobs.
However, after a whistleblower revealed that Theranos's blood disease diagnostic technology was "close to a scam," and investigative reports by The Wall Street Journal (WSJ) followed, this fraud was eventually exposed. Theranos's valuation then plummeted to zero, leading to liquidation proceedings.
The prosecution charged her with fraud and conspiracy to commit fraud in 2018. The trial, which was delayed due to the spread of COVID-19 and Holmes's childbirth, began in September last year and attracted worldwide attention. CNBC reported that people lined up from 2 a.m. to secure tickets to enter the courtroom.
In this trial, the prosecution argued that Holmes lied to raise investment funds, which constituted fraud. They claimed she was dishonest not only to investors but also to patients, and that this was a criminal act. Witnesses, including former U.S. Secretary of Defense James Mattis, testified that Holmes exaggerated the effectiveness of the blood test technology and manipulated reports. Holmes defended herself to the jury, saying she never intended to deceive anyone, including investors and patients.
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