The U.S. Securities and Exchange Commission (SEC) is currently investigating Roblox, a popular online game platform, according to a recent Bloomberg report. While the SEC confirmed the existence of an "active and ongoing investigation" involving Roblox through a Freedom of Information Act request, the specifics remain undisclosed. The commission cited potential harm to the ongoing proceedings as the reason for withholding further details. Roblox itself has not yet commented on the matter.
This 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 that fraudulent activities and unauthorized access could potentially inflate DAU figures. In 2024, Roblox announced significant improvements to its safety features and parental controls.
Prior to this, Roblox faced lawsuits in 2023 from families who accused the company of misleading claims regarding its platform's safety for children. A 2021 report also examined Roblox's user-generated content 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. CEO David Baszucki stated the company's continued investment in its virtual economy, app performance, AI-driven safety and discovery features, creator empowerment, and user experience enhancements.
