SEC Investigation Involves Roblox, Report Reveals

The widely acclaimed live service game, Roblox, is currently under investigation by the U.S. Securities and Exchange Commission (SEC), as revealed in a recent report. However, the specifics of Roblox's involvement remain unclear. According to Bloomberg, a response to a Freedom of Information Act request confirmed that Roblox was mentioned in emails related to an "active and ongoing investigation" by the SEC's Division of Enforcement.

The SEC's statement to Bloomberg acknowledged the existence of emails referencing Roblox but noted that sharing these would "harm the ongoing enforcement proceedings." The nature of the investigation and Roblox's exact role—whether as the subject or otherwise—have not been disclosed. Bloomberg's attempts to gain further information were unsuccessful, with Roblox not responding to requests for comment, and the SEC declining to elaborate.

Roblox has faced scrutiny from various quarters in recent times. Last October, a report accused Roblox Corporation of artificially inflating its daily active user (DAU) statistics and creating an unsafe environment for children. Roblox vehemently denied these claims on its official site, emphasizing that "safety and civility" are central to its platform, although it admitted that undetected fraud and unauthorized access could lead to inflated DAU numbers. In 2024, Roblox announced significant enhancements to its safety systems and parental controls.

Additionally, families initiated legal action against Roblox in 2023, alleging that the company misrepresented its capabilities to maintain a safe and child-friendly environment. A 2021 investigation by People Make Games examined the platform's user-generated content and questioned whether it was exploiting its creators.

Last week, Roblox shares experienced an 11% drop following the announcement of 85.3 million daily active users, falling short of the StreetAccount's projected 88.2 million. In response, Roblox CEO David Baszucki committed to further investments in the virtual economy, app performance, and "AI-powered discovery and safety," aiming to empower creators and enhance user experiences.