Elizabeth Holmes challenges order to pay victims of Theranos

Former CEO of Theranos Elizabeth Holmes is contesting the proposed requirement for her to pay $250 per month to victims of her failed company while serving her 11-year prison sentence.

Federal prosecutors have argued that she should contribute at least 10 per cent of her wages or $250 per month, whichever amount is greater, as restitution upon her release.

Currently incarcerated in a minimum-security women's prison camp located in Bryan, Texas, which accommodates approximately 650 inmates, the 39-year-old Holmes rose to prominence as the head of Theranos.

The startup claimed to have developed groundbreaking technology capable of detecting diseases with a simple finger prick and a few drops of blood. These assertions garnered nearly $1 billion in funding. However, Holmes defrauded investors of millions of dollars while promoting a blood-testing device that ultimately proved non-functional.

In a recent court filing, Holmes' lawyers argued that the government's proposed payment structure lacks a solid foundation in the existing record. However, they did not appear to object to the suggestion that she pay $25 per quarter during her incarceration as part of her restitution obligations. Given her potential employment within the women's prison camp, it is likely that any wages earned by Holmes would amount to less than $2 per hour.

Reports indicate that Holmes has been ordered to pay approximately $452 million in restitution to those she defrauded during her ill-fated attempt to establish Theranos. Her former romantic partner and business associate, Ramesh "Sunny" Balwani, received a 13-year prison sentence earlier this year in relation to the same case.