The widely acclaimed live service game, Roblox, is currently under scrutiny by the U.S. Securities and Exchange Commission (SEC), according to recent reports. The specifics of the investigation remain shrouded in mystery, but a response to a Freedom of Information Act request confirmed that Roblox is referenced in an "active and ongoing investigation" by the SEC's Division of Enforcement.

The SEC, while confirming the existence of relevant emails, declined to disclose further details, citing potential harm to the ongoing enforcement proceedings. Bloomberg, the outlet that reported on the investigation, was unable to ascertain the precise focus of the probe, and Roblox has not responded to requests for comment from the media.

Roblox has faced various criticisms in the past. A report from last October accused Roblox Corporation of inflating its daily active user (DAU) statistics and creating an unsafe environment for children. In response, Roblox vehemently denied these allegations on its official site, emphasizing its commitment to "safety and civility." The company also acknowledged that undetected fraud and unauthorized access could lead to an overstatement of DAUs. In 2024, Roblox introduced significant updates to enhance its safety systems and parental controls.

Additionally, in 2023, families initiated legal action against Roblox, challenging the company's claims about the safety and appropriateness of the platform for children. A 2021 investigation by People Make Games delved into the user-generated content on Roblox, questioning the platform's treatment of its creators.

Last week, Roblox shares experienced an 11% drop after the company reported 85.3 million daily active users, falling short of the StreetAccount estimate of 88.2 million. In response to these challenges, Roblox CEO David Baszucki outlined the company's continued focus on investing in its virtual economy, improving app performance, and advancing AI-powered discovery and safety measures to empower creators and enhance the overall user experience.