Roblox Faces SEC Probe: Report

The popular online game platform Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), according to a recent Bloomberg report. While the SEC confirmed the existence of an "active and ongoing investigation" referencing Roblox, details regarding the scope and subject of the inquiry remain undisclosed. The commission cited concerns about harming ongoing enforcement proceedings as the reason for withholding information. Roblox itself has not yet commented on the matter.

Roblox has faced scrutiny previously. Last October, a report alleged the company inflated its daily active user (DAU) statistics and created a harmful environment for children. Roblox vehemently denied these accusations, highlighting its commitment to safety and civility. The company acknowledged potential inaccuracies in DAU figures due to undetected fraud and unauthorized access, and in 2024 announced significant upgrades to its safety features and parental controls.

Prior to this, Roblox faced lawsuits in 2023 from families claiming the company misled users about its ability to maintain a safe and appropriate platform for children. A 2021 report by People Makes Games also investigated concerns about the exploitation of creators within Roblox's user-generated content system.

Recently, Roblox shares experienced an 11% drop following the company's report of 85.3 million daily active users—falling short of analyst predictions of 88.2 million. Despite this, CEO David Baszucki reaffirmed the company's commitment to investing in its virtual economy, app performance, and AI-powered safety and discovery tools.