Roblox Faces Scrutiny from U.S. Securities Regulators
By The US Securities and Exchange Commission (SEC) has initiated an inquiry involving Roblox.
According to Bloomberg, while the investigation is in progress, the specific emphasis of the SEC’s examination remains ambiguous. However, the commission acknowledged that the investigation is active and indicated it would not presently provide complete details to ensure there was “no detriment to the ongoing enforcement action.”
The SEC was founded following the 1929 Wall Street crash to safeguard Americans from market manipulation. It mandates publicly traded companies to submit quarterly and annual reports, as well as review any potential violations of securities laws.
“We have confirmed with the Division of Enforcement that there are relevant emails between Enforcement personnel mentioning Roblox, and that these emails are part of an active and ongoing inquiry,” an SEC representative informed Bloomberg through a Freedom of Information request.
Reports suggest—though it is unverified—that the investigation may relate to claims made in November that Roblox allegedly deceived investors by inaccurately reporting player counts and has revealed additional instances of inappropriate—and reportedly, unlawful—content being circulated on the platform.
In a clarification, Bloomberg emphasized that whilst the investigation pertains to Roblox, it cannot be confirmed that Roblox is the subject of the inquiry.
In response to the claims made in November, Roblox asserted at that time that it “disagrees” with the findings and highlighted previously released information on its efforts to monitor and combat inappropriate content. It also emphasized that it had previously acknowledged that “fraud and unauthorized access to [its] platform can contribute, from ti