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 proceedings as the reason for withholding further information regarding the nature and scope of its inquiry. Roblox itself has not yet commented on the investigation.
This SEC investigation follows previous scrutiny of Roblox. In October 2023, a report alleged the company inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox vehemently denied these claims, emphasizing its commitment to safety and civility. The company acknowledged the possibility of undetected fraud and unauthorized access impacting DAU figures and announced significant upgrades to its safety features and parental controls in 2024.
Prior to this, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety for children. A 2021 report also raised concerns about the potential exploitation of creators through user-generated content on the platform.
Recently, Roblox shares experienced an 11% drop after the company reported 85.3 million daily active users, falling short of analyst expectations of 88.2 million. Despite this, CEO David Baszucki reiterated the company's commitment to investing in its virtual economy, app performance, and AI-driven safety and discovery features.
