The highly popular live service game Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), as confirmed by a recent report. According to Bloomberg, a Freedom of Information Act request revealed that Roblox has been mentioned in an "active and ongoing investigation." The SEC confirmed to Bloomberg that there are emails between its enforcement staff referencing Roblox as part of this investigation.
The details of Roblox's involvement in the investigation remain unclear. The SEC has stated that it cannot disclose staff correspondence related to Roblox, citing potential harm to the ongoing enforcement proceedings. Bloomberg was unable to confirm the specific focus of the investigation, and Roblox did not respond to requests for comment. The SEC also declined to provide further comments on the matter.
Roblox has faced scrutiny from various quarters in recent times. 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 statement on its website, vehemently denying these allegations and emphasizing that "safety and civility" are core to its platform. The company also admitted that undetected fraud and unauthorized access could potentially inflate DAU numbers. In 2024, Roblox announced significant updates to its safety systems and parental controls.
Additionally, in 2023, families filed lawsuits against Roblox, claiming the corporation misrepresented its ability to ensure the site was safe and suitable for children. A 2021 report by People Makes Games examined the user-generated content on Roblox and questioned whether it was exploiting its 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 announced that the company would continue to invest in its virtual economy, app performance, and "AI-powered discovery and safety," aiming to empower creators and enhance the user experience.
