SEC Investigation Targets Roblox, Report Reveals

The widely acclaimed live service game Roblox is currently under scrutiny by the U.S. Securities and Exchange Commission (SEC), as confirmed by a recent report from Bloomberg. The SEC has acknowledged that Roblox is referenced in an "active and ongoing investigation," though details regarding the nature and extent of Roblox's involvement remain undisclosed. In response to a Freedom of Information Act request, 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 commission withheld further details, citing potential harm to the ongoing enforcement proceedings. Bloomberg was unable to ascertain the specific focus of the investigation, and Roblox did not respond to requests for comment from the outlet. The SEC also declined to provide additional information.

Roblox has faced criticism from multiple fronts recently. In October of the previous year, a report accused Roblox Corporation of inflating its daily active user (DAU) statistics and creating a "hellscape" for children. Roblox refuted these allegations on its official site, emphasizing that "safety and civility" are central 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 in response to these concerns.

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

Last week, Roblox's stock experienced an 11% decline after the company reported 85.3 million daily active users, falling short of the StreetAccount estimate of 88.2 million. Despite this setback, Roblox CEO David Baszucki remains committed to enhancing the platform, stating plans to invest in the virtual economy, app performance, and "AI-powered discovery and safety, empowering creators and enhancing the user experience."