Roblox: Inflated Key Metrics For Wall Street And A Pedophile Hellscape For Kids

Summary of the Hindenburg Research report on Roblox:

Hindenburg Research alleges that Roblox, a $27 billion gaming platform, is systematically deceiving investors by inflating key metrics and exposing children to dangerous content. The report claims Roblox overstates the number of "people" on its platform by 25-42% by conflating Daily Active Users (DAUs) with actual individuals, when DAUs can include multiple accounts from the same person and bots. Former employees revealed the company maintains "two sets of books" - one with accurate "de-alted" numbers for internal use and inflated figures for Wall Street reporting. More alarmingly, Hindenburg's investigation uncovered what they describe as "an X-rated pedophile hellscape" with extensive child safety failures: they found groups with over 100,000 members openly trading child pornography, over 900 Jeffrey Epstein fan accounts (including usernames like "igruum_minors"), games like "Escape to Epstein Island" accessible to children, violent content including hospital shooting simulators available to all ages, and numerous documented cases of predators using the platform to groom, kidnap, and sexually assault children as young as 8 years old. The researchers were able to create accounts as children within seconds with no age verification, encountered explicit sexual content and hate speech in games marketed to kids, and found that much of Roblox's content moderation was outsourced to overseas call centers paying $12 per day. The report suggests Roblox deliberately prioritizes growth metrics over child safety to maintain its stock valuation, even cutting trust and safety expenses by 2% in 2024 while insiders have sold $1.7 billion in stock since going public.

FULL ARTICLE