Roblox Referenced in Active SEC Investigation, Report Confirms

Roblox, the immensely popular online gaming platform, 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 regarding the investigation's scope and subject remain undisclosed. The commission cited concerns about harming ongoing enforcement proceedings as the reason for withholding further information. Roblox itself has not yet commented on the matter.

This SEC investigation follows previous scrutiny of Roblox. 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 potential for undetected fraud and unauthorized access to contribute to DAU overstatements and, in 2024, announced significant updates to its safety systems and parental controls.

Further investigations include lawsuits filed in 2023 by families alleging misleading statements about the platform's safety for children, and a 2021 report examining 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. CEO David Baszucki stated that Roblox will continue investing in its virtual economy, app performance, and AI-driven safety and discovery features to support creators and improve user experience.