The U.S. Securities and Exchange Commission (SEC) is currently investigating Roblox, a popular online game platform, 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, details regarding the scope and subject of the investigation remain undisclosed. The SEC cited potential harm to the ongoing proceedings as the reason for withholding further information. Roblox itself has not yet commented on the matter.
Roblox has faced scrutiny previously. 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 accusations, emphasizing its commitment to safety and civility. The company acknowledged the possibility of undetected fraud and unauthorized access impacting DAU figures and announced significant upgrades to its safety systems and parental controls in 2024.
Prior to this, lawsuits were filed in 2023 by families alleging misleading statements about the platform's safety for children. A 2021 report also examined Roblox's user-generated content and potential exploitation of creators.
Recently, Roblox shares experienced an 11% drop following the company's report of 85.3 million daily active users, falling short of analyst expectations. CEO David Baszucki highlighted continued investment in the virtual economy, app performance, and AI-driven safety and discovery features.
