Roblox is under SEC investigation

Roblox is under investigation by the US Securities and Exchange Commission (SEC).

As reported by Bloomberg, the SEC said that Roblox is part of an “active and ongoing investigation" but kept further details under wraps, citing potential harm to an ongoing enforcement proceeding. 

The news came to light following a Freedom of Information Act request by the media outlet.

“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,” read a statement from the SEC.

Child safety

Roblox recently found itself under the microscope following a Hindenburg report released in October 2024 that accused Roblox of misrepresenting player metrics and downplaying child safety issues. Roblox denied the claims, calling Hindenburg's report inaccurate.

In November 2024, Roblox introduced new safety enhancements to give parents more control to protect young players, including managing their child's account, access to friend lists, spending limits, and screen time. 

Despite introducing new protective measures to combat child safety on the platform, several employees warned it wasn't doing enough to combat predators. Bloomberg reported that some current and former staff described the effort as a "Sisyphean task.". 

Elsewhere, Roblox is suing PlayerAuctions for allegedly violating contracts by facilitating the sale of digital Roblox goods. Despite multiple cease-and-desist letters, PlayerAuctions has continued its transactions, which Roblox claims disrupt its virtual market.

The lawsuit highlights concerns over account boosting, in-game item sales, and child safety, noting that 12% to 15% of users have been suspended or banned for related violations.