The executives have denied the charges and face a coming criminal trial. The firm's remaining employees worked their last day on August 31.
The move to dissolve the company follows a failed effort to raise new capital and sell off the company's assets.
Balwani issued a statement through a representative: "As an investor who put millions of dollars of his own money and almost seven years of his life into Theranos, Mr. Balwani was saddened to see the letter from Theranos to investors [Tuesday]". All told, investors in Theranos have lost almost $1 billion. Mr. Balwani was Theranos's president and chief operating officer until he retired from the company in May 2016. An investigation by The Wall Street Journal in October 2015 revealed that Theranos was having trouble with the accuracy of its results, and a federal investigation began six months later. At one point, the business was valued at nearly $10 billion, largely on the strength of its promise to provide blood testing through just a drop or two of blood.
Under founder and now-former CEO Elizabeth Holmes, Theranos raised more than $700 million from investors and was valued at $9 billion at its peak. The pharmacy chain has said it was misled by Theranos about its technology and prospects. Holmes was subsequently banned from running a blood-testing lab, then from running a public company or serving on the board of one for the next decade. In reality, the SEC says, the analyzer could only complete a small number of tests, and the company "conducted the vast majority of patient tests on modified and industry-standard commercial analyzers manufactured by others".
The current liquidation process could mean it takes 6 to 12 months for creditors to receive Theranos' remaining cash. Its failure was dramatic and painful for many.
The company attracted the attention of United States regulators, including the Centers for Medicare and Medicaid Services, which in April a year ago took away the company's clinical laboratory testing certificate. This led Holmes to step down as CEO of the company and return all remain shares of Theranos.