Bill Gates' Daughter Could Face Up to 20 Years in Prison for Cookie Fraud
The youngest daughter of the Microsoft founder has found herself at the center of a high-profile investigation. Her startup is suspected of illegally replacing cookie files to receive commission payments, which is classified as internet fraud under US law.
As reported by BILD, citing Bloomberg, 23-year-old Phoebe Gates and her startup Phia are facing serious accusations. Phia is a browser extension designed to automatically find and apply coupons and discounts during online shopping. The project started very successfully: it raised over $40 million in investments from funds and celebrities such as Paris Hilton, Jessica Alba, Hailey Bieber, Khloe Kardashian, and Sydney Sweeney.
However, a Bloomberg investigation revealed that for several months, the company allegedly engaged in so-called "cookie stuffing." This fraudulent scheme involves automatically implanting or replacing cookie files in a user's browser without their knowledge.
Cookies are small text data that websites store on your computer or smartphone to remember your logins, items in your cart, or which advertising link you clicked on.
This allows the extension creators to receive commission percentages from online stores for user purchases, even if the program itself did not help facilitate the transaction in any way.
According to American prosecutor Ariel Givner, such practices are considered internet fraud in the USA. If proven guilty, the organizers of the scheme face large financial fines and potentially prison sentences of up to 20 years. It should be noted that at present, no official criminal charges have been filed against Phoebe Gates and her partners.
Meanwhile, Bloomberg insiders claim that the startup founders knew about the questionable operating methods as early as late 2025. The publication allegedly possesses an internal memo from December 2025, in which Phoebe Gates directly asks if automatic cookie placement is enabled on all available websites to maximize commission profit.
Representatives of Phia deny the accusations of deliberate fraud. The company emphasized that all "problematic" functions were removed from the extension on July 7 of this year.
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