Theranos founder Elizabeth Holmes has been approved to move to a halfway house next year, ABC News reported, years after her stunning downfall that culminated in a conviction for defrauding investors while running her failed blood testing startup.
She is scheduled to be placed in the Austin Transitional Center in Del Valle, Texas, in August 2027, ABC News reported, citing an update from the Department of Justice’s Victim Notification System.
Holmes was sentenced to more than 11 years in prison in 2022 after she was convicted on multiple charges of conspiracy to defraud investors and wire fraud related to the now-defunct company. Her sentence has since been reduced by a year.
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Holmes is currently being held at Federal Prison Camp Bryan in southern Texas, a minimum security federal prison camp that is approximately 100 miles from Houston, where she grew up before moving to California to attend Stanford.
Holmes was once an icon in the tech world, serving as a poster child for the limitless ambitions and potential of Silicon Valley. Her company began to unravel after a Wall Street Journal investigation in 2015 reported that Theranos had only ever performed roughly a dozen of the hundreds of tests it offered using its proprietary technology, and with questionable accuracy. It also came to light that Theranos was relying on third-party manufactured devices from traditional blood testing companies rather than its own technology. Theranos ultimately dissolved in September 2018.
The Federal Bureau of Prisons declined to provide information on the move, saying it doesn’t discuss “the conditions of confinement for any individual, including release plans.”
“BOP assigns individuals to facilities based on several factors. These include the level of security and supervision required, medical or programmatic needs, separation or security considerations necessary for the individual’s safety, and other relevant factors, such as proximity to the individual’s release residence,” the spokesperson told CNN Wednesday.
Halfway houses, also known as residential reentry centers, offer a supervised environment for inmates nearing release and services including career counseling and financial management assistance, according to the bureau.
The Austin Transitional Center is a 460-bed “community corrections center” owned by a private prison company. It’s located about 7 miles southeast of downtown Austin and is one of eight residential reentry centers in Texas.
Holmes’ sentence reduced months ago
Holmes, 42, began serving her sentence in May 2023 and was scheduled for release in February 2030, according to the Federal Bureau of Prisons.
News of the move comes about six months after a federal judge reduced Holmes’ prison sentence from 135 months to 123 months, finding she qualified for a retroactive sentencing-guidelines reduction for offenders who had no prior criminal history and met other conditions, according to a March court order.
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Holmes had also asked President Donald Trump for an early release from prison, according to a request filed with the Department of Justice. The White House earlier this year told CNN it does not comment on clemency requests.
Her attorneys argued last year that Holmes had “maintained an excellent record post-sentencing” and did not receive a single citation or disciplinary infraction during her incarceration. Holmes “dedicated herself to being an engaged prisoner, serving other women, and actively seeking opportunities to make a difference,” the attorneys wrote in their motion.
The government had objected to the resentencing, arguing Holmes caused “substantial financial hardship” to victims, had not accepted responsibility for her crimes, paid minimal restitution and can reoffend, according to court documents.
Judge Edward Davila ultimately found Holmes eligible for the reduction but emphasized it “does not diminish the enormity of Holmes’s crimes.”
Holmes started Theranos, once valued at $9 billion, as a college student and quickly became one of the most well-known women in Silicon Valley thanks to her promise to upend the healthcare industry. Theranos claimed its technology could accurately and efficiently test for conditions like cancer and diabetes with just a few drops of blood. It attracted $945 million in financing, a board of well-known political figures and prominent retail partners.
In 2018, Holmes and Theranos President Ramesh “Sunny” Balwani were each charged with wire fraud and conspiracy to commit wire fraud. Both pleaded not guilty. In 2025, a US appeals court upheld their convictions. It also upheld the $452 million in restitution that Holmes and Balwani were ordered to pay to victims.
Earlier this year, Holmes had gained renewed attention online after posts again began appearing on her X account, including a post lauding Trump’s health care affordability efforts. The Holmes account, which also features posts about Holmes’ husband, children and activities in prison, notes that posts are “mostly my words, posted by others.” It’s not clear who is managing the account.
“We are continuing to fight for my innocence and we know the truth can not be repressed for ever (sic),” Holmes’ account posted in January.
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