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 response, the specifics remain undisclosed. The commission cited potential harm to the ongoing proceedings as the reason for withholding details. Roblox has not yet commented on the investigation.
This investigation follows previous scrutiny of Roblox. Last October, a report alleged that Roblox inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox vehemently denied these claims, highlighting its commitment to safety and civility. The company acknowledged potential inaccuracies due to undetected fraud and unauthorized access. In 2024, Roblox announced significant upgrades to its safety features and parental controls.
Prior to this, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety and appropriateness for children. A 2021 report also examined concerns about potential exploitation of creators through user-generated content.
Recently, Roblox shares experienced an 11% drop after reporting 85.3 million daily active users, falling short of analyst expectations of 88.2 million. CEO David Baszucki emphasized continued investment in the virtual economy, app performance, and AI-driven safety and discovery features to enhance user experience and creator empowerment.
