SEC Probe Confirms Roblox Involvement

The highly popular live service game Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), as revealed by a recent report. The specifics of the investigation remain undisclosed, but the SEC confirmed to Bloomberg that Roblox is referenced in an "active and ongoing investigation." The commission 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 SEC withheld further details, citing potential harm to the ongoing enforcement proceedings. Bloomberg was unable to ascertain the exact focus of the investigation, and Roblox did not respond to requests for comment from the outlet.

Roblox has faced scrutiny from various quarters in the past. Last October, a report accused Roblox Corporation of inflating its daily active user (DAU) statistics and creating a "hellscape" for children. In response, Roblox issued a detailed rebuttal on its website, vehemently denying the allegations and emphasizing that "safety and civility" are core to its platform. The company also admitted that undetected fraud and unauthorized access could lead to an overstatement of DAUs. In 2024, Roblox announced significant updates to its safety systems and parental controls.

Additionally, families filed lawsuits against Roblox in 2023, claiming the corporation misrepresented its ability to ensure the site's safety and appropriateness for children. A 2021 report by People Make Games delved into Roblox's user-generated content, questioning whether it was exploiting creators.

Last week, Roblox shares experienced an 11% drop after the company reported 85.3 million daily active users, falling short of the StreetAccount estimate of 88.2 million. Roblox CEO David Baszucki stated that the company would continue to invest in its virtual economy, app performance, and "AI-powered discovery and safety, empowering creators and enhancing the user experience."