Loud scandal: Bill Gates's daughter faces up to 20 years in prison over fraud allegations

Bill Gates / illustrative photo from open sources

Phia, a startup founded by 23-year-old Phoebe Gates, the younger daughter of Microsoft cofounder Bill Gates, has found itself at the center of a loud scandal over accusations of possible fraud.

Phia’s browser extension was created to automatically display coupons and promo codes during online shopping, the publication Bild reports.

Initially the business grew actively: the company attracted more than $40 million from investors and celebrities, including Hailey Bieber, Chloe Kardashian, Sydney Sweeney, Paris Hilton, and Jessica Alba.

However, today Phia faces serious fraud accusations. According to Bloomberg’s investigation, the startup for several months engaged in so-called “cookie stuffing” — deceiving practice of substituting or adding cookies to a user’s browser without their knowledge. For several months Phia could have used a mechanism that allowed the company to receive partner commissions for online purchases.

American prosecutor Ariel Hevner explained that in the United States this practice is often pursued by law as internet fraud. In such cases large fines are possible. Theoretically the maximum penalty could be up to 20 years of imprisonment. At the same time, no official charges have been filed against Phoebe Gates yet.

According to Bloomberg sources, Phoebe Gates and her cofounder could have known about the problematic practices as early as the end of 2025 year.

As claimed, in a memo from December 2025 year Gates asked whether automatic cookie placement was enabled on all websites. This could have allowed Phia to receive more commissions from sales.

The startup itself denies the accusations. The company stated that the problematic features were removed as of 7 July.