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.

Sandy Hook families will have to wait a little longer to recoup anything from Alex Jones. On Wednesday, a federal bankruptcy judge froze a settlement deal between families who say the conspiracy theorist spewed false claims regarding the 2012 mass shooting at Connecticut's Sandy Hook Elementary School,