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, details regarding the investigation's scope and subject remain undisclosed. The commission cited potential harm to ongoing enforcement proceedings as the reason for withholding information. Roblox itself has not yet commented on the matter.

Roblox has faced scrutiny previously. A report last October alleged the company 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 in DAU figures due to undetected fraud and unauthorized access, and announced significant upgrades to its safety features and parental controls in 2024. Additional legal challenges include lawsuits from families alleging misleading statements about the platform's safety for children (2023), and a 2021 report examining potential exploitation of creators through user-generated content.

Last week, Roblox shares experienced an 11% decline following the company's report of 85.3 million daily active users, falling short of analyst expectations of 88.2 million. CEO David Baszucki emphasized continued investment in the platform's virtual economy, app performance, and AI-driven safety and discovery features.