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 remain scarce. The commission cited ongoing enforcement proceedings as the reason for withholding further information regarding the nature and scope of the investigation. 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, emphasizing its commitment to safety and civility. The company acknowledged potential inaccuracies in DAU figures due to undetected fraud and unauthorized access. Subsequently, in 2024, Roblox announced significant upgrades to its safety systems and parental controls.

Prior to this, Roblox faced lawsuits in 2023 from families claiming the platform misled users about its ability to maintain a safe and appropriate environment for children. A 2021 report by People Makes Games also examined user-generated content on Roblox, raising concerns about potential exploitation of creators.

Last week, Roblox shares experienced an 11% decline 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 focus on its virtual economy, app performance, and AI-driven safety and discovery features, aiming to empower creators and enhance user experience.