Roblox To Get $150 Million From US Government Over Silicon Valley Bank Collapse
Roblox is set to receive around $150 million in compensation after the collapse of Silicon Valley Bank. This comes after the US Federal Reserve pledges to bail out all SVB customers, even multibillion-dollar controversy-courting companies like the Roblox Corporation.
Roblox held five percent of its worth in SVB - now making headlines for being the second-largest bank failure in US history. The company was just one of the many customers that made up SVB’s almost $210 billion in assets, $175.4 billion of which the government will foot the bill for, even if a company’s deposits in SVB made up a relatively small part of its business.
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As reported by Kotaku, the Federal Reserve will compensate Roblox’s $150 million, despite the government typically having a cap on bailouts set at $250,000. Roblox and SVB's other customers are clearly getting much more of this back, because of course they are.
However, this news also comes at a time when Roblox seems to constantly be in the news for all of the wrong reasons. Whether it’s the largely child playerbase operating a “criminal underworld” to scam one another or games supporting terrorism being spotted on the platform, the game that the company operates is never far from the headlines.
That’s not even getting into the larger issue of how Roblox operates - profiting from the work of other game devs that use its service. Over the past few years, the company has come under fire for not adequately compensating the users that make Roblox worth using, although sometimes, it’s not the company itself that gets criticized for this.
Just recently, we covered the case of Sonic Speed Simulator, a Sonic Roblox game that has even
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