SEC says Roblox is sus . Refuses to elaborate

SEC Confirms Game Service Roblox Part of 'Active Investigation

• Agency withholds details, saying release may harm efforts

• Company has faced questions about its reported player data

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....

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.

Shares of Roblox fell 11% 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.

https://archive.ph/rSGbQ