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.

A federal bankruptcy judge on Wednesday rejected a proposal to hold a second auction for assets owned by Alex Jones’ right-wing conspiracy website Infowars. “We’re not doing that any more,” Judge Christopher Lopez said in a hearing in Houston’s downtown courtroom.

The judge also shut down the future sale of Infowars' assets, leaving the trustee authorized to sell only the company’s equity.

NEW YORK (Reuters) - A U.S. bankruptcy judge on Wednesday blocked a settlement between families who have 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.

The judge overseeing Alex Jones’s bankruptcy case suspended the sale of his conspiracy website Infowars, ending a monthslong effort to find a buyer.