The widely celebrated live service game Roblox is currently under scrutiny as part of an active investigation by the U.S. Securities and Exchange Commission (SEC), according to a recent report from Bloomberg. The SEC confirmed the existence of emails between its enforcement staff that mention Roblox, indicating their involvement in an "active and ongoing investigation." However, details about the nature and extent of Roblox's role in this investigation remain undisclosed. The SEC has stated that releasing further correspondence could jeopardize the enforcement proceedings, and neither Roblox nor the SEC have provided additional comments to Bloomberg on the matter.
Roblox has faced criticism from various quarters recently. Last October, a report accused Roblox Corporation of artificially inflating its daily active user (DAU) numbers and creating a harmful environment for children. In response, Roblox issued a detailed rebuttal on its website, firmly denying these allegations and emphasizing that "safety and civility" are core to its platform. The company also admitted that undetected fraud and unauthorized access could lead to inflated DAU figures. In 2024, Roblox announced significant enhancements to its safety systems and parental controls, aiming to address these concerns.
Previously, in 2023, families filed lawsuits against Roblox, claiming the company misrepresented its ability to ensure the platform's safety and suitability for children. Additionally, a 2021 report by People Make Games investigated whether Roblox's user-generated content was exploiting its creators.
Last week, Roblox experienced an 11% drop in its stock price after reporting 85.3 million daily active users, falling short of the StreetAccount's estimate of 88.2 million. Roblox CEO David Baszucki announced the company's continued commitment to investing in its virtual economy, app performance, and advancements in "AI-powered discovery and safety," with the goal of empowering creators and enhancing the overall user experience.
