A report accuses Roblox of misleading investors and failing to keep children safe
A recent report by Hindenberg Research has raised serious allegations against Roblox, claiming that the company has been misleading investors by falsely reporting player numbers since 2021. According to the report, daily player counts and engagement statistics have been inflated, as confirmed by multiple former employees of Roblox.
In response to the report, a Roblox spokesperson dismissed the allegations as “simply misleading”. However, the report also highlights instances of inappropriate and potentially illegal content circulating on the platform, despite Roblox’s claims of being a safe and secure platform.
Examples mentioned in the report include Roblox experiences named after known offenders like Jeffrey Epstein and P Diddy, as well as chatrooms where child sexual abuse images were reportedly being shared. These revelations have caused Roblox’s share price to drop by 4.6 percent, although it’s important to note that short-selling firms like Hindenberg Research stand to benefit from such reports.
The report goes on to reveal that Roblox insiders have reportedly cashed out $1.7 billion in stock while reporting losses each quarter. User numbers and engagement statistics have allegedly been inflated by up to 42 percent, with multiple accounts owned by the same user and bot accounts artificially boosting figures.
Former employees claim that Roblox differentiates between actual player counts used for internal decisions and publicly communicated numbers to investors, with alt and bot accounts not being flagged publicly. The report also highlights the existence of tools that allow users to run multiple bot accounts simultaneously on the platform.
In terms of child safety, the report paints a disturbing picture of Roblox as an “X-rated paedophile hellscape” where children are exposed to grooming, pornography, and abusive speech. Despite compromises being made to protect child accounts, the report suggests that leadership prioritizes engagement metrics over safety concerns.
Furthermore, the report details disturbing content found on the platform, such as games titled “Escape to Epstein Island” and “Run From Diddy Simulator”, as well as instances of explicit imagery and simulations of violent acts. It also suggests that Roblox may be reaching a saturation point in certain markets, affecting profitability per user.
Roblox has faced criticism in the past for its child safety issues, with reports of child exploitation and arrests resulting from in-game interactions. The recent report adds to the ongoing concerns about the platform’s ability to provide a safe and secure environment for its young users.