It’s all up to Elizabeth Holmes.

Theranos, a blood-testing lab started and led by Ms. Holmes that promised to revolutionize the industry, is now under criminal investigation and faces increasing skepticism about whether its core technology works. Several federal agencies are looking into the company’s operations. Ms. Holmes herself may have to answer to federal regulators about what she told investors.

Just last year, Theranos was a Silicon Valley favorite with a $9 billion valuation. Now, depending on the outcome of the investigations, including the threat of crippling sanctions by the Centers for Medicare and Medicaid Services, the company could be forced out of business and Ms. Holmes could lose her position as chief executive.

…

While Theranos is privately held, its investors still have protections, said Joseph Grundfest, a law professor at Stanford. “The federal securities laws have very strict anti-fraud provisions, and they apply to sophisticated investors, not just unsophisticated ones.”