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 the possibility of undetected fraud and unauthorized access contributing to DAU overstatements and announced significant updates to its safety systems and parental controls in 2024. In addition, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety for children. A 2021 report also examined 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 that Roblox will continue investing in its virtual economy, app performance, and AI-powered safety and discovery features to support creators and improve user experience.
