SEC Investigation Targets Roblox, Report Reveals

The immensely popular live service game Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), according to a recent report. However, the specifics of the investigation remain unclear. As reported by Bloomberg, a Freedom of Information Act request revealed that the SEC has confirmed the existence of emails referencing Roblox as part of an "active and ongoing investigation." The SEC stated to Bloomberg, "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."

The nature and extent of Roblox's involvement in the investigation are not yet public. The SEC has indicated that sharing staff correspondence could cause "harm to the ongoing enforcement proceedings." Bloomberg was unable to confirm the focus of the investigation, and Roblox did not respond to requests for comment. The SEC also declined to provide further details.

Roblox has faced scrutiny from various quarters recently. Last October, a report accused Roblox Corporation of inflating its daily active user (DAU) statistics and creating an unsafe environment for children. Roblox issued a detailed rebuttal on its website, firmly denying these claims and emphasizing that "safety and civility" are core to its platform. The company has also admitted that undetected fraud and unauthorized access might lead to an overstatement of DAUs. In 2024, Roblox announced significant updates to its safety systems and parental controls.

In 2023, families filed lawsuits against Roblox, alleging the company misrepresented its ability to ensure the platform's safety and appropriateness for children. A 2021 report from People Makes Games examined Roblox's user-generated content and raised concerns about the exploitation of creators.

Last week, Roblox shares dropped by 11% 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 plans to continue investing in the virtual economy, app performance, and "AI-powered discovery and safety, empowering creators and enhancing the user experience."