It's hard to imagine any demi-human who wouldn't have least heard, even if they were too squeamish to watch the whole thing. Despite the fact that something was clearly going on here, all Sato can really do is roll with the situation as he would have before getting transported to... wherever this is.

"The experimentation on demi-humans. Weapons testing, guinea pigs for pharmaceuticals... It's no less than government-sanctioned torture," he says with grave disapproval, shaking his head sadly. "And still humans are willing to capture us and turn us in to the authorities. None of us should have to stand for that."

To be fair, nothing about those words is a lie. But that doesn't mean Sato isn't spinning a story anyway to justify himself, prove himself one of the 'good guys' in the kid's eyes... or at least see if they're on the same team.