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.

This is masterful, creative lawyering, but at its core it is something I can’t approve,” federal Bankruptcy Judge Christopher Lopez said in his Texas courtroom