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 report. While the SEC confirmed the existence of an "active and ongoing investigation" involving Roblox in response to a Freedom of Information Act request, the specifics remain undisclosed. The SEC cited potential harm to the ongoing proceedings as the reason for withholding further information. Roblox itself has not yet commented on the investigation.

Roblox has faced scrutiny in the past. A report last October alleged the company inflated its daily active user (DAU) statistics and created a harmful environment for children. Roblox vehemently denied these accusations, emphasizing its commitment to safety and civility. The company acknowledged that undetected fraud and unauthorized access could lead to inflated DAU figures. Subsequently, in 2024, Roblox announced significant improvements to its safety systems and parental controls.

Prior to this, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety and appropriateness for children. A 2021 report also examined the platform's user-generated content and potential exploitation of creators.

Last week, Roblox shares experienced an 11% drop 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.