The US SEC (Securities and Exchange Commission) has confirmed that they have put Roblox under investigation.
As reported by Bloomberg and syndicated on Yahoo Finance, SEC responded to an FOIA request when they made this admission. They said this:
“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.”
However, the SEC declined to share the actual correspondence that was the subject of the FOIA request, stating that it could cause “harm to the ongoing enforcement proceeding.” While the communications didn’t clarify if they were focusing on Roblox the company, the video game platform it runs, or both, one can infer that both would be drawn into the investigation regardless.
Last October 2024, we reported on Hindenburg Research’s claims that Roblox was misleading their investors and the public about their profits and sustainability. A month later, another organization named Hunterbrook Media reported that the SEC was investigating Roblox. They also cited an FOIA request, but this was the first time the SEC admitted to the investigation.
While Roblox has been subject of multiple reports and allegations that their video game platform is unsafe for children, these allegations are not in the scope of the SEC. It’s more likely that the SEC is investigating if Roblox had committed or is culpable for financial crimes.
For those curious, the SEC shares this description of what their Division of Enforcement does in the agency:
“The Division of Enforcement oversees the agency’s civil law enforcement function by conducting investigations into possible securities law violations, filing hundreds of enforcement actions each year against wrongdoers, and returning money to harmed investors whenever possible.
Enforcement actions include federal court filings and administrative proceedings. See all enforcement activities.”
While they do not say so directly, the SEC implies that they are finished with preliminary inquiries as to whether Roblox should be investigated. We don’t know if the SEC is taking actions to bring Roblox to court, but it’s possible that they are corresponding with Roblox itself. Alternatively, they may be making contact with Roblox whistleblowers, as well as individuals or entities who work with or are adjacent to Roblox’s business.
Before the end of October 2024, Roblox introduced a new host of safety features to the platform. However, that has not stopped allegations against the company and its platform. We recently reported on new claims that charity organization Comic Relief used Roblox to exploit child players, while claiming it was to help with their charity work.
Financial and video game industry analyst Matthew Ball recently stated in his State of Video Gaming 2025 report that Roblox has the most engagement of any video game today. And so, much like Fortnite and Candy Crush, even if you aren’t personally interested or playing Roblox, it is still one of the most important entities in the industry today. It will be industry changing if Roblox is cleared or survives this potential investigation, just as much if it is indicted. So we wait and see what developments come further down the line.
