The hit game Roblox is currently in a major crisis with numerous allegations against the studio. What exactly happened? We’ll tell you everything.
Two reports published in October 2024 make serious allegations against Roblox, one of the most popular gaming platforms, especially among children. The first, from Hindenburg Research, accuses the company of misleading investors, regulators and advertisers by inflating its user statistics. According to this report, Roblox would include bot accounts and alternative accounts in its calculations, thereby distorting visitor numbers.
Roblox in the storm
According to Hindenburg, daily active users (DAU) are overvalued by 25 to 42%. As for the hours of commitment, they would be inflated by more than 100%. Internally, Roblox would have corrected the statistics, but these numbers would not be published. This manipulation would allow the company to create the illusion of stable growth while hiding stagnation in key markets such as the United States and Europe.
But that’s not all. The report also highlights serious safety concerns for children. According to Hindenburg, Roblox is a veritable “X-rated hell.” Children are exposed to inappropriate and even dangerous content. Examples include games that glorify sexual criminals like Jeffrey Epstein. It is also mentioned that unmoderated exchanges of pornographic images and sexual solicitations were observed in certain areas of the game.
An important impact
These allegations are reminiscent of a previous report published by Bloomberg in July 2024. More than 13,000 cases of child exploitation were uncovered on the platform in 2023, with very serious incidents including kidnapping. This report had already raised many concerns about Roblox’s ability to protect young users.
In response to these new allegationsRoblox said Hindenburg’s report was “misleading.” The company claims its platform is “safe” and does everything it can to protect children.
Despite this defense, the market reaction was not long in coming. Following these revelations, Roblox shares fell 4.6%. This clearly shows investors’ concerns about these allegations, both in terms of the transparency of the figures and the security of users.
In conclusion, these reports raise serious doubts about the future of Roblox. The company has been criticized for security breaches and intentionally inflating its statistics. The trust of investors and parents could be permanently affected. Transparency and child protection must become a priority for the company if it wants to improve its image.
Source: Hindenburg research
