Roblox Referenced in Active SEC Investigation, Report Confirms

The U.S. Securities and Exchange Commission (SEC) is actively investigating Roblox, a popular online game platform, according to a recent Bloomberg report. While the SEC confirmed the existence of an ongoing investigation involving Roblox through responsive emails, the specifics remain undisclosed. The commission cited potential harm to the proceedings as the reason for withholding further details. Roblox itself has not yet commented on the matter.

This investigation follows previous scrutiny of Roblox. Last October, allegations surfaced claiming the company inflated its daily active user (DAU) statistics and created a harmful environment for children. Roblox vehemently denied these claims, highlighting its commitment to safety and civility. The company acknowledged potential inaccuracies in DAU figures due to undetected fraud and unauthorized access. Subsequently, Roblox announced significant upgrades to its safety features and parental controls in 2024.

Prior to this, lawsuits were filed in 2023 by families alleging misleading statements regarding the platform's safety and suitability for children. A 2021 report also examined user-generated content on Roblox, raising concerns about potential creator exploitation.

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. Roblox CEO David Baszucki emphasized continued investment in the platform's virtual economy, app performance, and AI-driven safety and discovery features to enhance user experience and empower creators.