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 remain scarce. The commission cited potential harm to the ongoing proceedings as the reason for withholding further information regarding the nature and scope of the investigation. Roblox itself has not yet commented on the matter.
This investigation follows previous scrutiny of Roblox. Concerns have been raised regarding the accuracy of its daily active user (DAU) statistics, with accusations of deliberate inflation and a generally unsafe environment for children. Roblox has vehemently denied these allegations, emphasizing its commitment to safety and civility, while acknowledging potential inaccuracies due to fraud and unauthorized access. In response, Roblox announced significant upgrades to its safety features and parental controls in 2024.
Additional legal challenges have targeted Roblox. Lawsuits filed in 2023 accused the company of misleading claims about its ability to provide a safe and appropriate platform for children. Earlier reports also investigated potential exploitation of creators within Roblox's user-generated content system.
Recently, Roblox shares experienced an 11% drop following the company's announcement of 85.3 million daily active users, falling short of analyst expectations. Despite this, CEO David Baszucki reaffirmed the company's dedication to investing in its virtual economy, app performance, and AI-driven safety and discovery features.
