Roblox Referenced in Active SEC Investigation, Report Confirms

The immensely popular live service game Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), according to a recent report, though the full scope remains unclear. As reported by Bloomberg, a Freedom of Information Act request led to a statement from the SEC, confirming that Roblox has been referenced in an "active and ongoing investigation." The commission stated, "We have confirmed with Division of Enforcement staff that there are responsive emails between Enforcement staff referencing Roblox and that these emails are a part of an active and ongoing investigation."

The extent of Roblox's involvement in the investigation is not yet clear. The SEC told Bloomberg that sharing staff correspondence referencing Roblox would cause "harm to the ongoing enforcement proceedings." Bloomberg was unable to confirm the specific subject of the investigation, and Roblox did not respond to requests for comment from the outlet. The SEC also declined to provide further details.

Roblox has faced scrutiny from various sources in recent times. Last October, a report accused Roblox Corporation of deliberately inflating its daily active user (DAU) statistics and creating a "hellscape" for children. Roblox issued a detailed response on its own site, strongly denying these accusations and emphasizing that "safety and civility" are fundamental to its platform. The company also acknowledged that undetected fraud and unauthorized access could contribute to inflated DAU figures. In 2024, Roblox announced significant updates to its safety systems and parental controls to address these concerns.

In earlier developments, families sued Roblox in 2023, alleging the corporation was misleading about its "ability to make the site safe and appropriate for children." A 2021 report from People Makes Games also examined Roblox's user-generated content, questioning whether the platform was exploiting its creators.

Last week, 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. Roblox CEO David Baszucki stated that the company would continue to invest in its virtual economy, app performance, and "AI-powered discovery and safety, empowering creators and enhancing the user experience."