SEC Probes Roblox in Active Investigation

The U.S. Securities and Exchange Commission (SEC) is actively investigating Roblox, a popular online game platform, according to a recent Bloomberg report. While the SEC confirmed the existence of an ongoing investigation involving Roblox through internal emails, details remain scarce. The commission cited potential harm to the proceedings as the reason for withholding further information regarding the investigation's specifics. Roblox itself has not yet commented.

Roblox has faced scrutiny previously. A report last October alleged the company inflated its daily active user (DAU) figures and created a harmful environment for children. Roblox vehemently denied these claims, emphasizing its commitment to safety and civility. The company acknowledged potential inaccuracies in DAU counts due to undetected fraud and unauthorized access. Subsequent to these accusations, Roblox announced significant upgrades to its safety features and parental controls in 2024.

Prior to the October report, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety for children. A 2021 report also examined user-generated content on Roblox and potential exploitation of creators.

Recently, Roblox shares experienced an 11% drop following the release of DAU figures (85.3 million) that fell short of analyst expectations (88.2 million). Roblox CEO David Baszucki stated the company's continued focus on its virtual economy, app performance, and AI-driven safety and discovery features.