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.

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

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.