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

BranditScan Rolls Out 2 New Platform Features

BranditScan has introduced its new Traffic Optimization and Doxing Protection features for creators.

NMG Management Partners With Cosplayground to Scale Distribution

NMG Management has partnered with Cosplayground to expand the studio’s digital distribution and licensing operations.

Dreamcam Rolls Out 'Voice Translator AI'

Dreamcam has introduced a Voice Translator AI to its livestreaming platform.

UK Government May Limit 'Step' Porn Ban With New Amendments

The U.K. Ministry of Justice on Friday revealed new government amendments to the pending Crime and Policing Bill, potentially limiting a pending ban on “step” content to apply only if adult performers role-play as minors.

Arizona Senate Removes 'Catch-22' Provision From Consent Bill

The Arizona State Senate has amended a bill that would impose new requirements for adult content uploaded online, removing a seemingly contradictory provision that could have effectively made it impossible for adult sites to operate in the state.

Climaxx Media Launches Networking Platform

Climaxx Media has officially launched its new networking platform.

Italian Court in Aylo Case Limits International Reach of AV Rules

An Italian administrative court has ruled that Italy’s recently-enacted age verification rules for adult content may not currently be enforced against sites based in other EU member states, pending further procedural action under the EU’s Directive on Electronic Commerce.

OCC, FDIC Prohibit Use of 'Reputation Risk' by Regulators

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) on Tuesday issued a final rule codifying the elimination of ‘reputation risk’ as a criterion in their supervision of financial institutions.

Wisconsin Governor Vetoes Age Verification Bill

Gov. Tony Evers on Friday vetoed AB 105, an age verification bill that would have allowed anyone to sue adult content providers for damages over alleged failure to age-verify users in Wisconsin, with penalties of up to $10,000 per violation.

FSC Releases Statement on Wisconsin Governor Vetoing AV Bill

The Free Speech Coalition has released a statement on Wisconsin Governor Tony Evers' veto of the state's age verification legislation.

Show More