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" involving Roblox through a Freedom of Information Act request, the specific nature and scope of the inquiry remain undisclosed. The commission cited potential harm to the ongoing proceedings as the reason for withholding further details regarding staff correspondence related to Roblox. Roblox itself has yet to publicly comment on the matter.
This SEC investigation follows previous scrutiny of Roblox. Last October, allegations surfaced claiming the company artificially inflated its daily active user (DAU) figures and created a harmful environment for children. Roblox vehemently denied these accusations, emphasizing its commitment to safety and civility. The company acknowledged the possibility of undetected fraudulent activity and unauthorized access impacting DAU reporting and, in 2024, announced significant upgrades to its safety features and parental controls.
Prior to this, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety and appropriateness for children. A 2021 report also examined concerns about the exploitation of creators through user-generated content on the platform.
The recent SEC investigation comes on the heels of an 11% drop in Roblox's share price last week, following a reported 85.3 million daily active users – falling short of analyst expectations of 88.2 million. Roblox CEO David Baszucki stated the company's continued focus on its virtual economy, app optimization, and AI-driven safety and discovery features to support creators and enhance user experience.
