SEC Says Game Service Roblox Part of ‘Active Investigation’

SEC Says Game Service Roblox Part of ‘Active Investigation’
Short sellers previously said the company was under investigation, though Roblox denied allegations.
FEB 07, 2025
By  Bloomberg

Roblox Corp., the video-game service used by millions of young people, is part of an active investigation by the US Securities and Exchange Commission, according to information obtained by Bloomberg News.

Responding to a Freedom of Information Act request, the commission said in a letter Friday that it couldn’t share correspondence between staffers referencing Roblox, saying it could cause “harm to the ongoing enforcement proceeding.”

“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 commission said.

Bloomberg News couldn’t confirm the subject of the investigation. Roblox didn’t respond to requests for comment, and the SEC declined to make any additional comment.

Hunterbrook Media reported in November that Roblox was under investigation by the SEC, citing Freedom of Information Act requests. Hunterbrook cited an October letter from the commission saying it was withholding documents “which could reasonably be expected to interfere with enforcement activities.” Its affiliate, Hunterbrook Capital, had a short position in the shares.

In October, the now-defunct short-seller Hindenburg Research published a report on child-safety concerns at Roblox and also alleged that the company had inflated its metrics, including the number of users who regularly play Roblox games and the amount of time they spend on average on the platform.

“We totally reject the claims made in the report,” a Roblox spokesperson said at the time. “The authors are, admittedly short sellers (and have an agenda irrespective of the substance of Roblox’s business model and results).”

Hindenburg Research announced it was disbanding in January.

Shares of Roblox retreated as much as 4.8 percent following the Bloomberg News report. They were down 2.4 percent to $65.53 at 2:33 p.m. in New York.

The video-game company has faced scrutiny over children’s safety on the platform. Since 2018, At least two dozen people have been arrested by police in the US, accused of abusing or abducting victims they’d met or groomed using Roblox, Bloomberg News reported in July.

In 2024, Roblox implemented at least 40 safety changes to its platform, including barring children under age 13 from participating in social chatting games. The San Mateo, California-based company has said safety is its priority. 

Shares of Roblox fell 11 percent on Thursday after the company reported slower-than-expected growth in daily users of its service. It reported 85.3 million active users as of year end.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.