Major shareholders in Sulake, the company which runs children’s social network Habbo Hotel, are reportedly returning their investment in the firm after learning of an impending Channel 4 expose of grooming in the site’s chat rooms.

The story is being reported by The Kernel, with the presumably somewhat over-sexed headline of “Habbo Exposed as Paedophile Haven”.

According to that story, Balderton Capital, which owns a thirteen percent stake in Sulake, is returning its investment in the company after learning of a news investigation into chatroom behavior due to be broadcast on Channel 4 in the UK. In that investigation, it’s believed that allegations will be made that active grooming of 14 year olds is taking place on the site, alongside the usual low-level grotesque commentary which plagues so many such facilities.

Sulake CEO Paul LaFontaine has issued a further statement to GamesIndustry International regarding the Channel 4 investigation and the withdrawal of investors.

“I was incredibly concerned to see this report and to hear about the findings of the Channel Four News investigation. As a parent, I understand the critical importance of making sure teenagers and young people have a safe online experience,” said LaFontaine.

“I was sorry to hear of Balderton’s decision to withdraw its involvement, but my priority right now is to address the issues raised by the investigation. In response to Ben’s report, I would like to reassure readers that we at Sulake remain fully committed to the Habbo community and to resolving the issues it currently faces.

“Habbo has a strong record in this area with industry commendations and deep experience experience actively preventing potentially damaging content. Since hearing about the report I have asked my team to tighten security across the site and to strengthen the user rules even further.

I want to take this opportunity to assure our site users that I will be working with my team globally to deliver improved safety levels across the community. Anyone who is concerned can contact me directly on Twitter @PaulLaFo.”

LaFontaine also urged anyone with concerns over the safety of Habbo Hotel to read the statement previously issued on the company blog.

Source: GamesIndustry International