Roblox Referenced in Active SEC Investigation, Report Confirms

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" referencing Roblox, the specifics remain undisclosed. The commission cited potential harm to the proceedings as the reason for withholding details. Roblox itself has not yet commented on the matter.

This investigation follows previous scrutiny of Roblox. Last October, allegations surfaced claiming the company inflated its daily active user (DAU) figures and created a harmful environment for children. Roblox vehemently denied these accusations, emphasizing its commitment to safety and civility. The company acknowledged that fraudulent activities and unauthorized access could potentially inflate DAU numbers. Subsequently, in 2024, Roblox announced significant upgrades to its safety features and parental controls.

Prior to this, lawsuits were filed in 2023 by families alleging misleading claims about the platform's safety for children. A 2021 report also examined Roblox's user-generated content and potential exploitation of creators.

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. CEO David Baszucki stated that the company will continue to invest in its virtual economy, app performance, and AI-driven safety and discovery features.