According to a report in the Wall Street Journal, the company has notified shareholders that Theranos will soon be dissolved. The email states, "Because the Company's cash is not almost sufficient to pay all of its creditors in full, there will be no distributions to shareholders".
In the email obtained by the Wall Street Journal, he said the investment bank had "reached out" to over 80 potential buyers, but to no avail. The process of dissolving the company is expected to take six to 12 months. The Journal reports that most of the company's remaining employees worked their last day on August 31, while Taylor and a few others have just a few more days on the payroll.
The indictment states that Holmes and Balwani falsely claimed that they had developed revolutionary technology that could quickly provide a range of clinical tests from a small drop of blood.
Theranos founder Elizabeth Holmes, who started the company when she was 19, was celebrated as a rising Silicon Valley star until it became clear that numerous claims about the company's supposedly revolutionary blood test were bogus.
But prosecutors allege that Holmes and Balwani deliberately misled investors, policymakers and the public about the accuracy of Theranos' blood-testing technologies going back to at least 2013. Holmes stepped down from her position as CEO, and as Tuesday's announcement made clear, the company she founded will be no more.
The startup's founder and former CEO, Elizabeth Holmes, was indicted on federal wire fraud charges in June. Inc Magazine described Holmes "as the world's youngest female self-made billionaire, she's stumbled into this rarefied position and is beginning to own it".
John Carreyrou, the investigative journalist at the Journal whose stories exposed the scandal, has since written a book on the saga, Bad Blood, which highlights the weirdly cultish nature of the company. Walgreens ended its blood-testing partnership with the company, and the Department of Health and Human Services effectively banned Theranos in 2016 from doing any blood testing work.
In March, Ms Holmes settled charges with the Securities and Exchange Commission, a top U.S. financial regulator.
As part of the settlement, Ms Holmes had to return millions of shares to the privately held company and pay a $500,000 fine. Balwani is fighting the charges.
Theranos Chief Executive Officer Elizabeth Holmes speaks on stage at the Glamour Women of the Year Awards where she receives an award, in the Manhattan borough of NY, U.S., November 9, 2015.
Fortress gave the embattled Silicon Valley company a loan in 2017, helping Theranos avoid bankruptcy.
The big-name investors who poured money into Theranos will get nothing.
Information for this article was contributed by staff members of The Associated Press, by Jeff Sutherland of Bloomberg News and by Reed Ableson of The New York Times.