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.

Two sets of family members of victims killed in the Sandy Hook Elementary School shooting claimed Jones spread lies on his platform that the mass shooting was a hoax. Jones was on the losing side of judgments totaling more than $1 billion.

The decision complicates a proposed sale of Jones' Infowars platform, and could spur divisions between families who sued Jones and won nearly $1.3 billion in Connecticut court cases and those who won $50 million in Texas courts.