Roblox Referenced in Active SEC Investigation, Report Confirms

The U.S. Securities and Exchange Commission (SEC) is currently investigating Roblox, according to a recent Bloomberg report. While the SEC confirmed the existence of an "active and ongoing investigation" referencing Roblox, details remain scarce. The commission cited potential harm to the proceedings as the reason for withholding information related to the investigation's subject and Roblox's specific involvement. Roblox itself has not yet commented.

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

Prior to this, lawsuits were filed in 2023 accusing Roblox of misleading claims regarding its ability to maintain a safe and appropriate platform for children. A 2021 report by People Makes Games also explored concerns about potential exploitation of creators through user-generated content.

Last week, Roblox shares experienced an 11% drop following the company's report of 85.3 million daily active users, falling short of analyst expectations (88.2 million). CEO David Baszucki reiterated the company's commitment to investing in its virtual economy, app performance, and AI-driven safety and discovery features.