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 Bloomberg report. While the SEC confirmed the existence of an "active and ongoing investigation" involving Roblox through a Freedom of Information Act request, details about the investigation's scope and subject remain undisclosed. The SEC cited potential harm to the ongoing proceedings as the reason for withholding information. Roblox itself has not yet commented on the matter.

Roblox has faced scrutiny previously. A report last October alleged the company inflated its daily active user (DAU) figures and created a harmful environment for children, claims Roblox vehemently denied, emphasizing its commitment to safety and civility. The company acknowledged potential inaccuracies in DAU counts due to undetected fraud and unauthorized access. In 2024, Roblox announced significant improvements to its safety features and parental controls. Additionally, lawsuits from families in 2023 accused Roblox of misleading claims about the platform's safety for children. A 2021 report also examined concerns about the exploitation of creators through user-generated content.

Last week, Roblox shares experienced an 11% decline following the company's report of 85.3 million daily active users, falling short of analyst expectations of 88.2 million. Roblox CEO David Baszucki stated the company's continued investment in its virtual economy, app performance, and AI-driven safety and discovery features.