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 scope and subject of the inquiry remain undisclosed. The commission cited potential harm to the ongoing proceedings as the reason for withholding information. Roblox itself has not yet commented on the investigation.
Roblox has faced scrutiny previously. In October 2024, 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 undetected fraud and unauthorized access could contribute to DAU overestimation and announced significant updates to its safety systems and parental controls in 2024. Additionally, lawsuits from families in 2023 accused Roblox of misleading claims about the platform's safety for children, and a 2021 report examined potential creator exploitation within its 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 stated that Roblox will continue investing in its virtual economy, app performance, and AI-driven safety and discovery features.
