Roblox Referenced in Active SEC Investigation, Report Confirms

Roblox, the immensely popular online game platform, is currently under investigation by the U.S. Securities and Exchange Commission (SEC), according to a recent Bloomberg report. While the SEC confirmed the existence of an "active and ongoing investigation" referencing Roblox, the specific nature and scope of the inquiry remain undisclosed. The commission cited potential harm to ongoing enforcement proceedings as the reason for withholding further details. Roblox itself has not yet commented on the investigation.

This SEC investigation follows previous scrutiny of Roblox. Last October, a report alleged the company inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox vehemently denied these accusations, emphasizing its commitment to safety and civility. The company acknowledged that fraudulent activity and unauthorized access could contribute to DAU overstatements and announced significant updates to its safety and parental control features in 2024.

Further concerns were raised in 2023 when families filed lawsuits, claiming Roblox misled users about its ability to maintain a safe and appropriate platform for children. A 2021 report by People Makes Games also examined potential exploitation of creators within Roblox's user-generated content ecosystem.

Recently, Roblox shares experienced an 11% drop after the company reported 85.3 million daily active users, falling short of analyst expectations of 88.2 million. Despite this, CEO David Baszucki reiterated the company's commitment to investing in its virtual economy, app performance, and AI-driven safety and discovery features.