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 regarding 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 before. A report last October accused the company of inflating its daily active user (DAU) numbers and creating a harmful environment for children. Roblox vehemently denied these allegations, emphasizing its commitment to safety and civility. The company acknowledged that fraudulent activity and unauthorized access could potentially inflate DAU figures and announced significant updates to its safety features and parental controls in 2024. Previous legal actions include lawsuits from families alleging misleading claims about the platform's safety for children (2023) and a 2021 report examining potential exploitation of creators through user-generated content.
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. CEO David Baszucki stated the company's continued investment in its virtual economy, app performance, and AI-driven safety and discovery features.
