Roblox Called 'Pedophile Hellscape for Kids' in New Report Amid Congressional Stock Trades

A recent report by Hindenburg Research has ignited controversy around Roblox, a popular online game owned by Roblox Corp (RBLX:US), alleging it has become a "pedophile hellscape for kids." Despite these accusations, several congressional lawmakers and their associates have bought and sold Roblox stock in recent years.

The report details serious concerns, claiming bad actors groom children on the platform and encourage them to engage in inappropriate activities. It also highlights cases of kidnapping and sexual exploitation linked to the game. Despite these allegations, lawmakers, including Rep. Nancy Pelosi, Rep. Jim Banks, Rep. Ro Khanna, and Rep. Dan Goldman, have been active in Roblox’s stock market. Data from Capitol Trades shows that Paul Pelosi, Rep. Pelosi’s spouse, bought between $250,000 to $500,000 in Roblox stock in 2021 and later sold portions in 2022 and 2023. Similarly, someone linked to Rep. Banks traded between $15,000 and $65,000 in Roblox shares in 2021.

Rep. Ro Khanna, whose children own Roblox shares, defended the trades, emphasizing that the investments are managed by a third party and not under his control. "Both the buying and selling of these shares was handled by an independent third party without my knowledge," Khanna stated. Other lawmakers, such as Rep. Banks and Rep. Goldman, have yet to respond to requests for comment.

The National Center on Sexual Exploitation has called for legislative action, urging Congress to pass the Kids Online Safety Act in light of these findings. Roblox, meanwhile, has denied the allegations, emphasizing that user safety remains a top priority and pointing to its preventive measures to combat inappropriate content.

As scrutiny over Roblox and its investor ties deepens, the intersection of congressional stock trades and child safety concerns continues to provoke public debate.