Phoebe Gates and Sophia Kianni reportedly knew Phia was ‘cookie stuffing’ for months

According to the coverage, the app is accused of engaging in a cookie-stuffing scheme and falsely claiming sales it never actually drove. Furthermore, reports indicate that the founders allegedly knew about these practices for months while the application touted elevenfold revenue growth. Coverage notes that a lawyer has stated the maximum penalty involved could reach twenty years in federal prison, and mentions a reported twenty-four-hour excuse claim.

Media organizations have heavily scrutinized the situation, with Bloomberg and TechCrunch breaking down the mechanics of the reported cookie-stuffing accusations against Phia. This unfolding situation brings intense public and media scrutiny to Phia, a shopping application co-founded by high-profile figures. The context provided by the headlines centers on the rapid pivot from glowing reports of massive revenue expansion to severe fraud allegations, transforming the perception of the startup's market trajectory overnight.

Coverage does not yet specify the exact timeline of future legal proceedings, official federal charges, or formal responses from the co-founders beyond the initial reports. Observers and readers will need to follow subsequent updates from the reporting outlets—such as TechCrunch, Bloomberg, and the New York Post—to track whether formal legal actions are filed, how the founders address the specific cookie-stuffing claims, and what evidence may emerge regarding the duration of their alleged awareness.