Hindenburg Investigation Reveals Allegations Against Online Gaming Platform Roblox

Hindenburg Research on Saturday accused online gaming platform Roblox of allowing users to request content related to child sexual exploitation or solicit sexual favors from children on group chat walls.

The US-based short seller, who shared the allegations in a post on the child sexual abuse content or sexual compliments towards children (many using thinly coded language). The list is not comprehensive. It only took us an hour and a half to find these, and there are so many more.”

Roblox CEO David Baszucki called the platform “a beacon for security and civility” on CNBC today.

We found over 50 currently active Roblox group chat walls with no age restrictions where users are requesting child sexual abuse content or sexual favors… pic.twitter.com/8dOFu1q1jA

— Hindenburg Research (@HindenburgRes) November 1, 2024

The short seller claimed that the game company was aware of these problems long ago but did not take any action to fix the problem. “Roblox was aware of these issues years ago and did nothing significant to resolve them,” the post read.

Notably, last month Hindenburg announced a short position on the gaming company, claiming it was inflating metrics such as user numbers and engagement. Roblox incorporates user-generated content to increase engagement and generates revenue from in-game spending in virtual currency.

Hindenburg has previously targeted Indian billionaire Gautam Adani and his conglomerate for involvement in money laundering, among other allegations. These were vehemently rejected by the industrialists.

In September, the short seller made fresh allegations against Securities and Exchange Board of India Chairman Madhabi Puri Buch and her husband Dhaval Buch for their involvement in the money siphoning scandal involving the Adani group. The report raised conflict of interest allegations against Buch and noted that he did not disclose his actual income. These allegations have been vehemently denied by the couple.

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