SEC Investigation Targets Roblox, Report Reveals

The immensely popular live service game Roblox is currently under scrutiny by the U.S. Securities and Exchange Commission (SEC), according to a recent report. The nature and extent of Roblox's involvement in this investigation remain unclear. Bloomberg, through a Freedom of Information Act request, received a statement from the SEC confirming that Roblox had been mentioned in communications related to an "active and ongoing investigation." The SEC stated, "We have confirmed with Division of Enforcement staff that there are responsive emails between Enforcement staff referencing Roblox and that these emails are a part of an active and ongoing investigation." However, the commission withheld further details, citing potential harm to the ongoing enforcement proceedings.

Bloomberg was unable to ascertain the specific focus of the investigation, and Roblox did not respond to requests for comment. The SEC also declined to provide additional information.

Roblox has faced scrutiny from multiple fronts in recent times. In October of the previous year, a report emerged accusing Roblox Corporation of artificially inflating its daily active user (DAU) statistics and creating an unsafe environment for children. Roblox vehemently denied these allegations on its official site, emphasizing that "safety and civility" are core to its platform. The company also admitted that undetected fraud and unauthorized access could potentially lead to an overstatement of DAUs. In 2024, Roblox announced significant enhancements to its safety systems and parental controls.

Additionally, in 2023, families initiated legal action against Roblox, claiming the corporation misrepresented its capabilities in maintaining a safe and suitable environment for children. A 2021 report by People Makes Games investigated Roblox's user-generated content and questioned whether the platform was exploiting its creators.

Last week, Roblox shares experienced an 11% decline 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 the company's commitment to further investments in its virtual economy, app performance, and advancements in "AI-powered discovery and safety," with the goal of empowering creators and enhancing the overall user experience.