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 has yet to publicly comment on the matter.
Roblox has faced scrutiny previously. A 2023 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 potential inaccuracies in DAU figures due to undetected fraud and unauthorized access, and subsequently announced significant improvements to its safety systems and parental controls in 2024. Additionally, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety for children, and a 2021 report examined potential exploitation of creators through user-generated content.
Last week, Roblox shares dropped 11% following the company's report of 85.3 million daily active users, falling short of analyst expectations of 88.2 million. Roblox CEO David Baszucki stated the company's continued investment in its virtual economy, app performance, and AI-driven safety and discovery features.
