Roblox Referenced in Active SEC Investigation, Report Confirms

The widely acclaimed live service game, Roblox, is currently under investigation by the U.S. Securities and Exchange Commission (SEC), as revealed by a recent report. However, the specifics of the investigation remain undisclosed. According to Bloomberg, the SEC confirmed the existence of emails referencing Roblox in an "active and ongoing investigation" following a Freedom of Information Act request.

The SEC stated to Bloomberg, "We have confirmed with Division of Enforcement staff that there are responsive emails between Enforcement staff referencing Roblox and that these emails are a part of an active and ongoing investigation." The commission withheld further details, citing potential harm to the ongoing enforcement proceedings. Bloomberg was unable to ascertain the focus of the investigation, and Roblox did not provide a response to Bloomberg's inquiries. The SEC also declined to offer additional comments.

Roblox has faced scrutiny from various quarters in recent times. Last October, a report criticized Roblox Corporation for allegedly inflating its daily active user (DAU) statistics and creating a "hellscape" for children. Roblox vehemently denied these claims on its official site, emphasizing that "safety and civility" are central to its platform. The company also acknowledged that undetected fraud and unauthorized access could lead to inflated DAU figures. In 2024, Roblox announced significant enhancements to its safety systems and parental controls.

Previously, in 2023, families filed lawsuits against Roblox, alleging the company misrepresented its ability to ensure the platform's safety and appropriateness for children. A 2021 report by People Makes Games delved into whether Roblox's user-generated content was exploiting creators.

Just last week, Roblox's stock experienced an 11% drop after the company reported 85.3 million daily active users, falling short of the StreetAccount estimate of 88.2 million. Roblox CEO David Baszucki stated that the company would continue to invest in its virtual economy, app performance, and "AI-powered discovery and safety, empowering creators and enhancing the user experience."