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 part of an ongoing investigation, according to a recent report from Bloomberg. The SEC confirmed the involvement of Roblox in their investigation after a Freedom of Information Act request, stating that there are emails between enforcement staff that reference Roblox as part of this active inquiry.

However, the specifics of Roblox's role in the investigation remain unclear. The SEC has withheld further details, citing potential harm to the ongoing enforcement proceedings. Bloomberg was unable to ascertain the precise focus of the investigation, and Roblox did not provide a comment when approached by the outlet. The SEC also declined to elaborate further on the matter.

Roblox has faced various criticisms in the past. In October of the previous year, a report surfaced accusing Roblox Corporation of inflating its daily active user (DAU) numbers and creating a detrimental environment for children. Roblox issued a detailed rebuttal on its website, vehemently denying these claims and emphasizing that "safety and civility" are core to its platform. The company also admitted that undetected fraud and unauthorized access could lead to inflated DAU figures. In 2024, Roblox introduced significant enhancements to its safety protocols and parental control features.

Additionally, in 2023, families initiated legal action against Roblox, alleging the company misrepresented its capabilities in maintaining a safe and suitable environment for young users. A 2021 report from People Make Games delved into the user-generated content on Roblox, raising concerns about the exploitation of creators.

Most recently, Roblox experienced an 11% drop in its share value last week after reporting 85.3 million daily active users, falling short of the StreetAccount estimate of 88.2 million. In response, Roblox CEO David Baszucki affirmed the company's commitment to further investments in its virtual economy, app performance, and advancements in AI-powered discovery and safety to bolster creator empowerment and enhance user experience.