Hindenburg Research has accused online gaming platform, Roblox, of letting users solicit content related to child sexual exploitation or seek sexual favors with children on its group chat walls.
Sharing the claims in a post on the social media platform, X, formerly known as Twitter, the US-based short seller said, “We found over 50 Roblox group chat walls that are active right now, with no age restrictions, where users are soliciting child sexual exploitation content or sexual favors with children (many using thinly-coded language). The list is not exhaustive. It took us only about an hour and a half to find these and there are many more.”
Roblox tweeted:
“Roblox’s CEO David Baszucki was on CNBC today calling the platform a "beacon for safety and civility". We found over 50 Roblox group chat walls that are active right now, with no age restrictions, where users are soliciting child sexual exploitation content or sexual favors… pic.twitter.com/8dOFu1q1jA”
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Was Roblox Aware Of These Issues?
Hindenburg claimed that the gaming company was made aware of these issues long back, however, it took no action to resolve the issue. “Roblox was made aware of these issues years ago and has done nothing substantive to address them,” the post read.
In September, Hindenburg disclosed a short position on the gaming company alleging that it boosted metrics like user numbers and engagement. Roblox is involved in user-generated content to increase engagement and search from in-game spending on virtual currency.
Hindenburg earlier targeted Indian tycoon Gautam Adani and his conglomerate for being involved in money laundering, alongside other allegations. Their allegations were ridiculed by the billionaire. Last month, the company also raised new allegations against the Securities and Exchange Board of India Chair, Madhabi Puri Buch, and her husband, Dhaval Buch, that they owned shares in the money siphoning scandal related to the Adani group.
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India’s Gaming Market Could Reach $9.8 Billion By FY29
India’s gaming industry is said to expand from USD 3.7 billion in FY24 to USD 9.8 billion by FY29, achieving a compound annual growth rate (CAGR) of around 20 percent, as per a report from consulting firm 1Lattice.
This growth is attributed to several factors, including increased smartphone adoption, a young demographic, and government initiatives aimed at upgrading India’s presence in the global gaming sector.
As per the report, with more than 950 million internet users and 820 million smartphone users, India’s gaming base reached 560 million in FY23. Key drivers of this growth include enhanced connectivity, affordable high-quality smartphones, and the expansion of digital payments, which have all contributed to the industry’s reach.