The immensely popular online game Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), according to a recent report, though the specifics remain undisclosed.
Bloomberg News, citing a Freedom of Information Act request, revealed that the SEC confirmed the existence of an "active and ongoing investigation" referencing Roblox. The SEC stated that responsive emails between enforcement staff mentioning Roblox are part of this investigation.
However, the SEC declined to elaborate on the nature or scope of the investigation, citing potential harm to ongoing enforcement proceedings. They also refused to release staff correspondence related to Roblox. Bloomberg’s attempts to determine the investigation's subject and obtain comment from Roblox were unsuccessful.
Roblox has faced scrutiny from various sources. Last October, a report alleged 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 and acknowledging potential inaccuracies in DAU figures due to undetected fraud and unauthorized access. In 2024, Roblox announced significant upgrades to its safety systems and parental controls.
Prior to this, families filed lawsuits in 2023, claiming Roblox misled users about its ability to maintain a safe and appropriate environment for children. A 2021 report by People Makes Games also investigated Roblox's user-generated content and potential exploitation of creators.
Last week, Roblox shares dropped 11% following the company's report of 85.3 million daily active users, falling short of StreetAccount's projected 88.2 million. Roblox CEO David Baszucki stated that the company would continue investing in its virtual economy, app performance, and AI-driven safety and discovery features to empower creators and enhance user experience.
