Habbo chat disabled as another investor pulls out

Habbo has lost another investment partner as an investigation into alleged user misconduct continues. Earlier this week, UK broadcaster Channel 4 went public with reports of "sexual, perverse, violent, and pornographic" chat in the children's virtual world formerly known as Habbo Hotel.

Today, Gamasutra reports that 3i, a private equity group that owns 16 percent of Habbo parent firm Sulake, is pulling out. Previously, Sulake shareholder Balderton Capital returned its stake, while retailers Tesco and WH Smith removed Habbo gift cards from their websites.

Sulake CEO Paul LaFontaine subsequently announced that all chat functionality on the Habbo website has been disabled pending the results of a potentially lengthy internal investigation.