Hindenburg Research, the short-seller known for calling out companies like Carl Icahn’s and Gautam Adani’s, has accused Roblox of being a “pedophile hellscape.”
In its report, released on Tuesday, the firm claimed that young players are exposed to explicit content, including grooming, digital strip clubs, violent themes, and sexual content.
The report mentions a game called "Escape to Epstein Island," where Epstein allegedly chases a young girl, and references over 600 experiences involving Sean "Diddy" Combs, including "Freak Off" role-play games.
Hindenburg stated, “We found Roblox to be an X-rated pedophile hellscape, replete with users attempting to groom our avatars… violent content and extremely abusive speech — all of which is open to young children.”
The report also criticized Roblox’s content moderation practices, accusing the company of reducing its moderation spending to boost earnings.
Roblox, which hosts 80 million daily active users, mostly under 16, was also accused of allowing "over 900 account variations" involving Jeffrey Epstein.
Roblox has denied the allegations, calling the financial claims "misleading" and rejecting the accusations entirely. Despite the company’s denial, Roblox's stock price fell as much as 9% following the report.
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