Roblox Probe: SEC Investigation Underway

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 investigation's scope and subject remain undisclosed. The SEC cited potential harm to ongoing enforcement proceedings as the reason for withholding further information. Roblox itself has not yet commented on the matter.

Roblox has faced scrutiny previously. 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 claims, emphasizing its commitment to safety and civility. The company acknowledged that fraudulent activities and unauthorized access could potentially inflate DAU figures. Subsequently, in 2024, Roblox announced significant upgrades to its safety features and parental controls.

Additional past concerns include lawsuits filed in 2023 by families alleging misleading statements about the platform's safety for children, and a 2021 report examining potential exploitation of creators through user-generated content.

Recently, Roblox shares experienced an 11% drop following the company's report of 85.3 million daily active users, falling short of analyst expectations of 88.2 million. CEO David Baszucki stated the company's continued focus on its virtual economy, app performance, and AI-driven safety and discovery features to support creators and improve user experience.