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Microsoft Taps UK Courts to Dismantle Cybercrime Host RedVDS

Microsoft seized RedVDS domains after court approval, disrupting a service linked to over 15,700 compromised Microsoft email accounts in late 2025, aiding cybercrime worldwide.

  • On Wednesday, Microsoft's Digital Crimes Unit announced a court authorized seizure of RedVDS domains and coordinated civil actions in the U.S. District Court for the Southern District of Florida and United Kingdom courts.
  • RedVDS operated by leasing disposable virtual machines running unlicensed Windows for as little as $24 a month and launched in 2019, providing servers across the U.S., Canada, U.K., France and the Netherlands.
  • Data from Microsoft's Threat Intelligence indicates RedVDS-enabled attacks caused at least $40 million in U.S. fraud losses, involved over 2,600 virtual machines sending one million phishing messages per day, and compromised more than 191,000 Microsoft email accounts across 130,000 organizations.
  • Victims affected have begun joining Microsoft as co-plaintiffs, including Alabama pharmaceutical company H2-Pharma, which lost more than $7.3 million, and Florida's Gatehouse Dock Condominium Association, tricked out of nearly $500,000.
  • Microsoft says the effort aims to disrupt shared infrastructure used by Storm-2470, with researchers noting the marketplace proliferated in the past year facilitating thousands of attacks.
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Portfolio broke the news in on Wednesday, January 14, 2026.
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