The immensely popular online game Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), according to a recent report, though the specifics remain undisclosed.
Bloomberg, citing a Freedom of Information Act request, revealed that the SEC confirmed the existence of an "active and ongoing investigation" referencing Roblox. The commission stated that responsive emails between Enforcement staff mentioning Roblox are part of this ongoing investigation.
However, the SEC declined to provide further details, citing potential harm to the ongoing proceedings if staff correspondence referencing Roblox were released. Bloomberg's attempts to determine the investigation's subject and Roblox's response to the inquiry were unsuccessful.
Roblox has faced scrutiny from various sources. Last October, a report alleged that the company inflated its daily active user (DAU) statistics and created a harmful environment for children. Roblox vehemently denied these accusations, emphasizing its commitment to safety and civility on its platform. The company acknowledged that undetected fraud and unauthorized access could contribute to inflated DAU figures. In 2024, Roblox announced significant upgrades to its safety systems and parental controls.
Prior to this, families filed lawsuits against Roblox in 2023, claiming the company misled users about its ability to maintain a safe and appropriate environment for children. A 2021 report by People Makes Games also examined Roblox's user-generated content and potential exploitation of creators.
Last week, Roblox shares experienced an 11% drop following the company's report of 85.3 million daily active users, falling short of StreetAccount's projected 88.2 million. Roblox CEO David Baszucki stated the company's continued investment in its virtual economy, app performance, and AI-powered safety and discovery features, aimed at empowering creators and enhancing user experience.
