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 request, details regarding the investigation's scope and subject remain undisclosed. The SEC cited potential harm to ongoing enforcement proceedings as the reason for withholding further information. Roblox itself has not yet commented on the matter.
This investigation follows previous scrutiny of Roblox. Last October, a report alleged the company inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox vehemently denied these claims, emphasizing its commitment to safety and civility. The company acknowledged that fraudulent activities and unauthorized access could lead to DAU overestimation and announced significant updates to its safety features and parental controls in 2024. Furthermore, lawsuits from families in 2023 accused Roblox of misleading claims regarding the platform's safety 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 the company reported 85.3 million daily active users, falling short of analyst expectations of 88.2 million. CEO David Baszucki stated the company's continued investment in its virtual economy, app performance, and AI-driven safety and discovery features.