SEC Confirms Roblox Investigation

Roblox, the highly popular live service game, is currently under investigation by the U.S. Securities and Exchange Commission (SEC), as per a recent report. Although the details of the investigation remain undisclosed, the SEC confirmed to Bloomberg that Roblox is referenced in an "active and ongoing investigation." This was revealed following a Freedom of Information Act request, with the SEC stating that they have emails between enforcement staff that reference Roblox as part of this investigation. However, the SEC noted that sharing these correspondences could harm the ongoing enforcement proceedings, and thus declined to provide further details. Roblox did not respond to Bloomberg's requests for comment, leaving the specifics of their involvement and the focus of the investigation unclear.

Roblox has faced scrutiny in the past. Last October, a report accused Roblox Corporation of inflating its daily active user (DAU) statistics and creating a "hellscape" for children. In response, Roblox vehemently denied these claims on its official site, emphasizing that "safety and civility" are core to its platform. They also admitted that undetected fraud and unauthorized access might lead to an overstatement of DAUs. In 2024, Roblox introduced significant updates to enhance its safety systems and parental controls. Additionally, in 2023, families filed lawsuits against Roblox, alleging the company misrepresented the platform's safety for children. A 2021 report by People Make Games further investigated Roblox's user-generated content and its impact on 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. In response, Roblox CEO David Baszucki announced continued investments in the virtual economy, app performance, and advancements in "AI-powered discovery and safety," aiming to empower creators and enhance the overall user experience.