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

Eli Thomas Launches 'VerifiedCollab' Verification Platform

Performer Eli Thomas has launched VerifiedCollab, a verification platform for creators and producers.

House Committee to Weigh Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce will meet Thursday to consider and potentially amend the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

SWR Data Publishes 'Creator Income' Report

Adult industry market research firm SWR Data has published a report on creator incomes.

Pineapple Support to Host 'Neurodivergent Performers' Support Group

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

'Legal Impact' Webinar Unpacks North Carolina's New Consent Law

Industry attorney Corey D. Silverstein on Thursday held a webinar focused on North Carolina’s HB 805, a new law that has significantly altered performer consent requirements in the state.

FSC Launches Privacy-First Age Verification Solution for Members

The Free Speech Coalition (FSC) announced today that it has granted members exclusive access to the PrivateAV age verification solution.

Brazil: New AV Requirements Set to Take Effect March 17

President Luiz Inácio Lula da Silva this week gave final approval to new regulations requiring adult websites to age-verify users located in Brazil starting March 17.

FSC Recommends Platforms Integrate StopNCII.org Tool

In a blog post, Free Speech Coalition (FSC) has recommended that platforms integrate the StopNCII.org tool to prevent the sharing of non-consensual intimate imagery (NCII).

Utah 'Porn Tax' Bill With VPN Provisions Passes State Senate

The Utah state Senate has passed a bill that would impose a 2% tax on the revenues of adult websites doing business in that state, and make sites liable if Utah minors use VPNs to circumvent geolocation.

Show More