In addition to denying the proposed deal, a federal judge told the Chapter 7 trustee that he was no longer authorized to sell Infowars' assets.

The ruling by a U.S. bankruptcy judge in Houston further complicates how and when Jones' bankruptcy case will be resolved and when the families he defamed will be paid.

A US bankruptcy judge has blocked a settlement between families who sued Alex Jones over his false claims about the 2012 Sandy Hook Elementary School mass shooting, saying their attempt to divide the bankrupt conspiracy theorist's assets exceeded his court's authority.