SEC Report Confirms Roblox Investigation

The widely popular live service game, Roblox, is currently under scrutiny by the U.S. Securities and Exchange Commission (SEC), as revealed by a recent report. Although the specifics of the investigation remain undisclosed, the SEC confirmed to Bloomberg that Roblox is part of an "active and ongoing investigation." The SEC stated, "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." However, due to potential harm to the enforcement proceedings, the commission declined to share further details or staff correspondence related to Roblox.

The nature and focus of the investigation are still unclear. Bloomberg was unable to ascertain the specific subject of the investigation, and Roblox did not respond to requests for comment. The SEC also refrained from providing additional statements.

Roblox has faced other criticisms in the past. Last October, a report accused Roblox Corporation of inflating its daily active user (DAU) statistics and creating an unsafe environment for children. Roblox vehemently denied these accusations on its official site, emphasizing that "safety and civility" are core to its platform. The company also admitted that undetected fraud and unauthorized access might lead to inflated DAU numbers. In response, Roblox announced significant updates to its safety systems and parental controls in 2024.

Previously, families filed lawsuits against Roblox in 2023, claiming the company misrepresented its ability to ensure the platform's safety and appropriateness for children. A 2021 report from People Makes Games also explored the potential exploitation of creators through Roblox's user-generated content.

Amid these challenges, Roblox shares experienced an 11% drop last week after the company reported 85.3 million daily active users, falling short of the StreetAccount estimate of 88.2 million. In response, Roblox CEO David Baszucki reiterated the company's commitment to enhancing its virtual economy, app performance, and investing in "AI-powered discovery and safety" to empower creators and improve the user experience.