Roblox’s Predator Protection Scandal

Three teenagers using smartphones while standing against a textured wall

When a children’s gaming platform starts legally targeting those who expose predators instead of removing the predators themselves, the financial reckoning becomes inevitable.

Story Highlights

Roblox accumulated $3.5 billion in losses while cutting safety spending to improve earnings metrics
Multiple state attorneys general and the SEC launched investigations into child exploitation failures
Company’s stock dropped 10% after banning vigilante streamers who exposed platform predators
Documented cases include children aged 8-14 being groomed, kidnapped, and exploited by adults met on platform
Leadership sold $1.7 billion in stock while aware of safety crisis spanning 2019-2024

Financial Priorities Override Child Protection

Roblox Corporation’s decision tree reveals a disturbing pattern: when forced to choose between protecting children and protecting profit margins, executives consistently chose shareholders. The company cut content moderation spending by 2% in 2024 while simultaneously reporting $3.5 billion in accumulated losses since going public in 2021. CEO David Baszucki and company insiders sold approximately $1.7 billion worth of stock during this same period.

The National Center on Sexual Exploitation warned Baszucki directly in May 2023 that “extensive evidence suggests that Roblox has not sufficiently prioritized child protection.” Instead of addressing these concerns, the company launched new products that safety advocates argue provide “predators with a new way to connect with kids.” This response pattern demonstrates leadership’s awareness of the crisis paired with deliberate inaction.

Documented Exploitation and Criminal Cases

The scope of child exploitation on Roblox extends far beyond isolated incidents. Criminal cases from 2019-2024 document predators systematically targeting children aged 8-14 through the platform’s communication features. One 2022 case involved a 13-year-old kidnapped after being groomed by an adult she met through Roblox. These cases represent successful prosecutions, suggesting the actual scope of exploitation attempts is significantly larger.

Criminal groups including “764” and “CVLT” have operated predatory networks directly on the platform. The Daily Mail documented in 2020 what it called a “dark underworld where underage kids participate in digital sex parties.” Law enforcement agencies have filed multiple indictments connecting Roblox interactions to offline sexual exploitation of minors, creating a documented trail of the platform facilitating real-world harm to children.

Corporate Retaliation Against Safety Advocates

Roblox’s August 2025 decision to target vigilante streamers exposed the company’s true priorities. When YouTuber “Schlep” conducted sting operations to identify alleged predators on the platform, Roblox responded with cease-and-desist letters, account terminations, and IP bans. The company cited terms of service violations while taking no comparable action against the predators these streamers were exposing.

This legal harassment triggered immediate financial consequences. Multiple creators in Roblox’s Video Stars Program departed the platform in protest, and the stock price fell over 10%. The market reaction demonstrated that investors recognize the fundamental business risk created by prioritizing predator protection over child safety. Roblox’s legal strategy backfired spectacularly, creating the exact financial damage the safety cuts were meant to prevent.

Regulatory and Legal Avalanche

State attorneys general across the country recognized what Roblox leadership refused to acknowledge: the platform’s business model creates systemic child endangerment. Kentucky Attorney General Russell Coleman filed suit in October 2025, explicitly stating that Roblox maintains “insufficient guardrails for children.” Oklahoma’s attorney general announced investigations seeking outside law firms to pursue similar action.

The Securities and Exchange Commission launched its own investigation in February 2025, while law firm Anapol Weiss filed four separate lawsuits representing exploited children and announced plans to pursue “hundreds of similar cases.” Each legal action creates discovery obligations that will expose internal communications about safety decisions. The cumulative legal exposure now threatens the company’s financial viability in ways that proper safety spending never would have.