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 scope and subject of the investigation remain undisclosed. The SEC cited potential harm to the proceedings as the reason for withholding further information. Roblox has not yet publicly commented on the matter.
Roblox has faced scrutiny previously. Last October, a report alleged the company inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox vehemently denied these claims, emphasizing its commitment to safety and civility. The company acknowledged that fraudulent activities and unauthorized access might contribute to inflated DAU figures and announced significant updates to its safety features and parental controls in 2024. In addition, lawsuits were filed in 2023 accusing Roblox of misleading claims about its platform's safety for children. A 2021 report also examined user-generated content on the platform and potential exploitation of creators.
Last week, Roblox shares experienced an 11% drop following the release of DAU figures (85.3 million) that fell short of analyst expectations (88.2 million). Roblox CEO David Baszucki stated the company's continued investment in its virtual economy, app performance, and AI-driven safety and discovery features, aiming to empower creators and improve the user experience.
