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 confirmed by a recent report from Bloomberg. The SEC disclosed that Roblox was mentioned in communications related to an "active and ongoing investigation," following a Freedom of Information Act request. The exact nature and focus of this investigation remain unclear, with the SEC withholding further details to avoid "harm to the ongoing enforcement proceedings." Bloomberg was unable to ascertain the investigation's specific subject, and Roblox did not provide a response to their inquiries for comment. The SEC also refrained from making additional statements on the matter.

Roblox has faced criticism from various quarters in the past. In October of the previous year, a report emerged accusing Roblox Corporation of artificially inflating its daily active user (DAU) figures and creating an unsafe environment for children. Roblox vehemently denied these allegations on its official platform, emphasizing that "safety and civility" are core to its operations. The company also admitted that undetected fraud and unauthorized access could lead to an overestimation of DAUs. In 2024, Roblox introduced significant enhancements to its safety features and parental controls.

Legal challenges have also been mounted against Roblox. In 2023, families initiated lawsuits claiming that Roblox misrepresented its capabilities in ensuring a safe and appropriate environment for young users. Additionally, a 2021 investigation by People Makes Games delved into whether Roblox's user-generated content system was exploiting its creators.

Last week, Roblox experienced an 11% decline in its stock value after reporting 85.3 million daily active users, falling short of the projected 88.2 million by StreetAccount. In response, Roblox CEO David Baszucki outlined plans to continue investing in the platform's virtual economy, app performance, and "AI-powered discovery and safety," with the goal of supporting creators and improving the overall user experience.