The U.S. Securities and Exchange Commission (SEC) is currently investigating Roblox, 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 scope and subject of the investigation remain undisclosed. The SEC cited potential harm to ongoing enforcement proceedings as the reason for withholding further information, and Roblox has yet to publicly comment.
This investigation comes amidst various previous criticisms leveled against Roblox. A report last October accused the company of inflating its daily active user (DAU) numbers and creating a harmful environment for children, allegations Roblox vehemently denied, citing its commitment to safety and civility. The company acknowledged potential inaccuracies in DAU figures due to undetected fraud and unauthorized access. In 2024, Roblox announced significant upgrades to its safety features and parental controls.
Prior to this, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety for children. A 2021 report by People Makes Games also examined concerns about the potential exploitation of creators through user-generated content on the platform.
Recently, 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 emphasized the company's continued investment in its virtual economy, app performance, and AI-driven safety and discovery features.
