Roblox Referenced in Active SEC Investigation, Report Confirms

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

A Freedom of Information Act request revealed that the SEC confirmed the existence of internal communications referencing Roblox within an "active and ongoing investigation." However, the SEC declined to provide further details, citing potential harm to the ongoing proceedings. Roblox itself has not yet commented on the matter.

This SEC investigation follows previous scrutiny of Roblox. 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 the possibility of fraudulent activity and unauthorized access impacting DAU figures. Subsequently, in 2024, Roblox announced significant upgrades to its safety features and parental controls.

Prior to this, lawsuits were filed in 2023 by families who accused Roblox of misleading statements regarding the platform's safety and suitability for children. A 2021 report also examined user-generated content on Roblox and potential exploitation of creators.

Recently, Roblox shares experienced an 11% drop after the company reported 85.3 million daily active users, falling short of analyst expectations of 88.2 million. Despite this, CEO David Baszucki reiterated the company's commitment to investing in its virtual economy, application performance, and AI-driven safety and discovery features.