It was implied which led to fraud convictions. Elizabeth Holmes made misleading claims that gave the impression their technology could revolutionize disease detection and management for example by speaking about a future where people could test themselves regularly and catch disease
The fraud in Theranos for which Holmes et al were ultimately convicted was running regular blood tests (i.e., those any certified lab would run) on samples which were too small so that the blood tests gave essentially random data. Yes, they made much more outlandish claims about what they could eventually do (and at times veered into making those claims about what they could do at the present), but the actual fraud was that they couldn't even do what they were certified to do.