SEC Investigation Targets Roblox, Report Reveals

The popular live service game Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), as revealed by a recent report. According to Bloomberg, a Freedom of Information Act request prompted the SEC to acknowledge that Roblox is referenced in an 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, the specifics of Roblox's involvement or the focus of the investigation remain unclear. The SEC mentioned to Bloomberg that releasing staff correspondence could harm the ongoing enforcement proceedings. Neither the subject of the investigation nor Roblox's response to inquiries from Bloomberg were disclosed, and the SEC declined to provide further comments.

Roblox has faced scrutiny from various angles in the past. Last October, a report accused Roblox Corporation of inflating its daily active user (DAU) statistics and creating a "hellscape" for children. Roblox strongly denied these allegations on its official site, emphasizing that "safety and civility" are core to its platform. They also admitted that undetected fraud and unauthorized access might lead to an overstatement of DAUs. In 2024, Roblox announced significant updates to enhance its safety systems and parental controls.

Additionally, families filed lawsuits against Roblox in 2023, claiming the company misrepresented its ability to ensure the site's safety and appropriateness for children. A 2021 report by People Makes Games investigated Roblox's user-generated content and potential exploitation of creators.

Last week, Roblox's shares dropped by 11% 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 reaffirmed the company's commitment to investing in its virtual economy, app performance, and "AI-powered discovery and safety, empowering creators and enhancing the user experience."