Roblox Referenced in Active SEC Investigation, Report Confirms
The popular online game platform Roblox 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 through a Freedom of Information Act request, details remain scarce. The commission cited potential harm to ongoing enforcement proceedings as the reason for withholding further information regarding the nature and scope of the investigation. Roblox itself has not yet commented publicly.
Roblox has faced scrutiny previously. Last October, a report alleged the company inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox strongly denied these claims, emphasizing its commitment to safety and civility, while acknowledging potential inaccuracies in DAU figures due to fraud and unauthorized access. Subsequently, in 2024, Roblox announced significant updates to its safety features and parental controls.
Further investigations into Roblox include lawsuits filed in 2023 by families alleging misleading claims about the platform's safety for children, and a 2021 report examining potential exploitation of creators through user-generated content.
Last week, Roblox shares experienced an 11% drop following the company's report of 85.3 million daily active users, falling short of analyst predictions. CEO David Baszucki stated that Roblox will continue investing in its virtual economy, app performance, and AI-driven safety and discovery features.
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