SEC Probe into Roblox Confirmed by Report

The highly popular live service game Roblox is currently under scrutiny by the U.S. Securities and Exchange Commission (SEC) as part of an active and ongoing investigation, according to a recent report from Bloomberg. The SEC confirmed the investigation through a Freedom of Information Act request, stating that there are emails between Enforcement staff referencing Roblox. However, the specifics of Roblox's involvement or the focus of the investigation remain undisclosed. The commission noted that releasing any staff correspondence related to Roblox could harm the ongoing enforcement proceedings. Both Roblox and the SEC declined to provide further comments on the matter.

Roblox has faced criticism from various quarters in the past. Last October, a report accused Roblox Corporation of inflating its daily active user (DAU) statistics and creating an unsafe environment for children. In response, Roblox issued a detailed rebuttal on its website, emphasizing that "safety and civility" are core to its platform, while also admitting that undetected fraud and unauthorized access might lead to an overstatement of DAUs. In 2024, Roblox announced significant updates to enhance its safety systems and parental controls.

Furthermore, in 2023, families filed lawsuits against Roblox, alleging that the company misrepresented its ability to ensure the site's safety and appropriateness for children. A 2021 report by People Makes Games also examined Roblox's user-generated content and raised concerns about the exploitation of creators.

Recently, Roblox shares experienced an 11% decline after the company reported 85.3 million daily active users, falling short of the StreetAccount estimate of 88.2 million. In response to this, Roblox CEO David Baszucki affirmed the company's commitment to investing in its virtual economy, app performance, and advancements in AI-powered discovery and safety to empower creators and enhance the overall user experience.