Is Habbo (formerly Habbo Hotel) a despicable hang-out for pedophiles that are continually preying on its underage users? A report that will air tonight on a Channel 4 news claims that they have strong evidence that it is. The report claims that pedophiles are chatting it up in the graphical social game-like teen destination, asking them if they have a "web cam," if they will get naked on camera, and trying their best to engage under age children in sexually charged conversations.
Upon learning about the extent of the report (which many believe is very damning towards Habbo and the people that are supposed to be in charge of keeping its young users safe), several investors have decided to dump their holdings and walk away from Habbo.
The second largest investor in Habbo owner Sulake, Balderton Capital, is expected to dump its 13 percent stake and resign from the board.
"We were given some information a week ago that profoundly shocked us," a Balderton spokesperson stated. "We had to ask ourselves whether we were comfortable being investors in a business where children were not being adequately protected."
Another report over at GamesIndustry International reveals some of Channel 4's report, which is pretty explicit in its description of just what is going on over at Habbo. It also offers some comments from Sulake CEO Paul LaFontaine.
In his response, he said that he was disappointed that investors were backing away from his company and that, as a parent he understood the concerns being brought up by Channel 4. He also pledged that the Habbo team would work diligently and expediently to police the virtual world more efficiently.
We will have more on this story as new information becomes available.