Entering the Gates of Lies: Unmasking the Climate Version of Theranos

A high-profile sustainable e-commerce startup, Phia, co-founded by Phoebe Gates and climate influencer Sophia Kianni, faces allegations that it fraudulently collected affiliate commissions by using hidden code to register itself as the final click in online transactions. The company, which had raised more than $43 million in seed funding and carried a reported valuation of $185 million by early 2026, is accused of exploiting a browser plug-in that opened an invisible tab and falsely recorded purchases it did not facilitate, generating “millions” in affiliate revenue.

“sustainability aspect … buying an item secondhand actually represents an 80% reduction in carbon footprint compared to buying new,” Kianni said while describing Phia’s mission to direct shoppers toward secondhand products.

Phia’s spokesperson responded to the allegations in a brief statement: “as soon as we were notified, our team worked overnight to identify, mitigate, and has since resolved the issue.” The statement does not deny the behavior alleged by outside investigators, and it follows prior scrutiny: reports from November claimed Phia was collecting a “concerning amount of user data,” including users’ banking information.

Kianni, who founded the climate advocacy group Climate Cardinals before studying at Stanford and served as a climate ambassador at COP27 in Egypt, helped position Phia as a climate-friendly alternative in the resale economy. Gates, daughter of Bill Gates, has likewise promoted sustainability credentials as part of the company narrative. Celebrity investors associated with the startup include Sydney Sweeney, Khloé Kardashian, Jessica Alba, Kris Jenner, and Hailey Bieber.

• Alleged scheme: Computer experts say a browser extension quietly opened a background tab that digitally registered Phia as an affiliate marketer, allowing the startup to claim commission on purchases it did not influence.
• Funding and valuation: More than $43 million in seed capital and a reported $185 million valuation by early 2026.
• Data concerns: Prior reports in November alleged extensive user-data capture, including banking details.
• Internal dissent: A former senior executive at Climate Cardinals who spoke anonymously said, “I was involved for two years and we didn't really do anything. It ruined my perspective for prestige,” and quoted an internal claim that “all the numbers on the website are artificially inflated. None of them are real.”

Industry observers and some former staff describe a culture of inflated metrics and rapid staff departures after internal revelations. One anonymous former employee said many colleagues “no longer wanted to be part of the lies,” prompting a mass exodus. The combination of alleged fraudulent affiliate activity, reported data collection concerns, and internal whistleblowing has put investor and public trust at risk, particularly given the visibility of celebrity backers.

Looking ahead, Phia faces scrutiny on multiple fronts: technical forensics into the alleged affiliate-routing code, privacy investigations tied to the reported collection of financial data, and reputational fallout that could prompt investors to reevaluate support. The episode also raises broader questions about vetting and governance in climate-focused startups that mix activism, celebrity profiles, and rapidly scaling consumer technology—especially when public claims about environmental benefit, such as Kianni’s 80% reduction figure for secondhand purchases, become central to the brand promise.