Roblox Referenced in Active SEC Investigation, Report Confirms

The U.S. Securities and Exchange Commission (SEC) is currently investigating Roblox, a popular online game platform, according to a recent report. The specifics of the investigation remain undisclosed.

Bloomberg news agency, citing a Freedom of Information Act request, revealed the SEC confirmed the existence of an "active and ongoing investigation" involving Roblox. However, the SEC declined to provide details, citing potential harm to the ongoing proceedings. Roblox itself has not yet commented on the matter.

While the nature of the SEC's inquiry is unclear, Roblox has faced scrutiny in the past. 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 might contribute to DAU overestimation. In 2024, Roblox announced significant upgrades to its safety features and parental controls.

Previous legal challenges include lawsuits filed in 2023 by families alleging misleading statements about the platform's safety and appropriateness for children. A 2021 report also examined Roblox's user-generated content and potential exploitation of creators.

Recently, Roblox shares experienced an 11% drop following a report of 85.3 million daily active users, falling short of market expectations of 88.2 million. Roblox CEO David Baszucki stated the company plans to continue investing in its virtual economy, app performance, and AI-driven safety and discovery features to improve the user experience and empower creators.