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

Venus Berlin Joins ASACP as Media Sponsor

Venus Berlin has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

XBIZ Miami's Host Hotel Sold Out; Additional Hotel Added

Guest rooms at XBIZ Miami’s exclusive conference venue, Goodtime Hotel in South Beach, are now completely sold out.

Penthouse Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of Penthouse World Media in a case against a website using an infringing domain.

'Collective Corruption' Relaunches Through PAYSITE

Fetish and BDSM membership site Collective Corruption has relaunched through PAYSITE.

RocketGate Taps Joël Drapeau for Senior Account Executive Role

Payment processing company RocketGate has hired industry veteran Joël Drapeau as its new account executive for business development and client relations.

VR Reloaded: Inside the Next Era of Immersive Adult Entertainment

For years, virtual reality in adult entertainment hovered somewhere between “quirky novelty” and “exciting promise of things to come.” While the technology hinted at a radically different way to experience erotic media, early experiments often required bulky headsets, complicated downloads, and production techniques that weren’t yet quite up to the task.

Pineapple Support Names Ocean Hanx Brand Ambassador

Pineapple Support has named creator Ocean Hanx as its newest brand ambassador.

Meta Restores Playboy Germany Facebook Page After Court Order

The Facebook page of Playboy Germany, the German-language edition of the magazine, is now back online after a two-month suspension by Meta, following an order by the Düsseldorf Regional Court.

UPDATED: European Commission Unveils AV App, Addresses Hacks

The European Commission’s age verification app is now technically ready and will soon be available for EU citizens to use in order to prove their age when accessing online platforms, European Commission President Ursula von der Leyen announced Tuesday.

Syren De Mer, Eddie Patrick Cap AEBN's Top Stars for 1st Quarter of 2026

AEBN has revealed its most popular performers in straight and gay theaters for the first quarter of 2026.

Show More