Adult Web Host Alpha Red Files for Bankruptcy

LOS ANGELES — Alpha Red, a major web hosting provider, has filed for Chapter 11 bankruptcy protection.

The company, which hosts many adult sites on its servers, made the filing last week in the southern district of Texas with about $10 million in debt to pay off, including $826,000 to the IRS. Other creditors awaiting payment include Cogent Communications ($1.6 million); and Level (3) Communications ($799,798).

Texas law firm Okin & Kilmer will represent Alpha Red during its bankruptcy proceedings.

According to the tech blog Work Bench, Alpha Red has been in legal trouble for some time.

"On Sept. 23, Alpha Red CEO James Reed McCreary IV and the company were sued by Washington state Attorney General Robert McKenna, who accused McCreary of selling 'scareware,' software that made Windows XP users falsely believe that their registry had become 'damaged and corrupted,'" wrote tech analyst Rogers Cadenhead.

The Washington state suit against Alpha Red went on to accuse the company of scaring customers into buying unnecessary cleaning software for $39.95 a pop.

"We won't tolerate the use of alarmist warnings or deceptive 'free scans' to trick consumers into buying software to fix a problem that doesn't even exist," McKenna said.

Alpha Red's problems haven't gone unnoticed by the adult industry. Several threads have appeared on prominent message boards like GFY.com and JustBlowMe.com. Online discussion has included many complaints about Alpha Red's "shady" behavior and tolerance for video-sharing adult sites. Online records indicate that Alpha Red hosts video-sharing sites like Tube8.com.

So far, Alpha Red customers haven't been able to get any help. Customers who went straight to the company's headquarters in Houston had no luck.

"The place is locked down and no one answering the phone [or] mails," one anonymous customer wrote online. "Got 10 servers stuck inside and can't do anything."

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Ofcom Escalates Sun Social, Superb Convert Investigations

U.K. media regulator Ofcom has ramped up its ongoing Online Safety Act (OSA) compliance investigations into PlayVids/PeekVids operator Sun Social Media and PimpBunny operator Superb Convert.

Centrobill Rolls Out Apple Pay, Google Pay Options

Centrobill has added Apple Pay and Google Pay options for merchants.

Judge Preliminarily Approves Pornhub Class Action Settlement

A U.S. District Court judge on Monday granted preliminary approval to a settlement between Aylo and the plaintiffs in two class-action lawsuits over allegations that former Pornhub parent company MindGeek knowingly allowed and profited from CSAM on its sites.

Roald Riepen Steps Down as CEO of IMC

Roald Riepen, CEO of International Media Company (IMC), is stepping down.

Ofcom Sets Timeline for Enforcing 'Extreme' Content Rules

Before U.K. media regulator Ofcom begins enforcing new laws criminalizing certain “extreme” adult content online, it will first hold a consultation in early 2027, and then provide updated guidance for sites and platforms.

FSC Publishes Guidance on New UK Pornography Laws

The Free Speech Coalition (FSC) has published information for its members on the United Kingdom's recently passed pornography laws, which take effect next week.

Brazil Issues Guide to Digital Safety Compliance

Brazil’s National Data Protection Agency (ANPD) published on Wednesday a new guide outlining online providers’ child-protection responsibilities under the Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

AEBN Publishes Popular Searches by Country for August, September

AEBN has released the list of popular searches from its straight and gay theaters, by country, for August and September.

2027 XBIZ Exec Awards Nominees Announced for Adult Entertainment Edition

XBIZ is pleased to announce the nominees for the adult entertainment industry edition of the 2027 XBIZ Exec Awards, set to be presented as part of the annual XBIZ Honors ceremony on Friday, Jan. 8, in conjunction with the XBIZ 2027 event series.

Pineapple Support to Host 'Effective Parenting' Support Group

Pineapple Support is hosting a free online support group for performers with children.

Show More