Roblox under investigation by the US Securities and Exchange CommissionPandora's blox.Image credit: Roblox / US SEC / Eurogamer News by Vikki Blake Contributor Published on Feb. 10, 2025 The US Securities and Exchange Commission (SEC) has launched an investigation into Roblox.As reported by Bloomberg, while the investigation is ongoing, the exact focus of the SEC's probing remains unclear. The commission did however acknowledge the investigation was active, and said it could not currently share full details to ensure there was "no harm to the ongoing enforcement proceeding".The SEC was established after the 1929 Wall Street crash in a bid to protect American citizens from market manipulation. It requires public companies to submit quarterly and annual reports, as well as investigate possible violations of the securities laws.To see this content please enable targeting cookies. Xbox Developer Direct - four promising games also coming to PlayStation.Watch on YouTube"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," an SEC spokesperson told Bloomberg, via a Freedom of Information request: Bloomberg suggests - though it is not confirmed - that the investigation may pertain to November's report that Roblox misled investors by falsely reporting player numbers, and has highlighted yet more examples of inappropriate - and allegedly, illegal - content being shared via the platform.In response to November's report, Roblox said at the time that it "rejects" its findings and pointed to previously-released details of its efforts to try and combat inappropriate content. It also stressed that it had previously acknowledged that "fraud and unauthorised access to [its] platform may contribute, from time to time, to an overstatement of DAUs".Roblox shares dropped by 20 percent last week after the platform's reported daily active users fell short of analysts' estimates.For the fourth quarter (ending 31st December), the number of daily active users fell by four percent to 85.3 million compared to the previous quarter. Wall Street analysts had forecasted 88.4 million. Overall player engagement also declined by 9.7 percent in the same period to 18.7bn hours.Eurogamer has contacted Roblox for comment.