Roblox Referenced in Active SEC Investigation, Report Confirms

The popular online game platform Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), 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 ongoing enforcement proceedings as the reason for withholding information about the investigation's subject and scope. Roblox itself has not yet commented on the matter.

Roblox has faced scrutiny previously. Last October, a report alleged the company inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox denied these accusations, emphasizing its commitment to safety and civility, while acknowledging potential issues with fraud and unauthorized access affecting DAU figures. In 2024, the company announced significant upgrades to its safety features and parental controls. Additionally, lawsuits filed in 2023 accused Roblox of misleading users about its ability to maintain a safe and appropriate platform for children. A 2021 report also examined concerns about the exploitation of creators within Roblox's user-generated content system.

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 of 88.2 million. CEO David Baszucki stated that Roblox will continue investing in its virtual economy, app performance, and AI-driven safety and discovery features.