An executive from an auction firm involved in the liquidation of Alex Jones’ controversial platform, Infowars, provided nearly five hours of testimony on Monday. This took place as a bankruptcy court in Texas commenced hearings to determine whether The Onion, a satirical news outlet, was legitimately awarded the winning bid over a company affiliated with Jones.
Jeff Tanenbaum, the president of ThreeSixty Asset Advisors, faced intense scrutiny from Jones’ legal team regarding how The Onion’s bid was assessed at $7 million and the absence of a live auction. He stood by the valuation of the bid and its selection, asserting that it was justified after revealing the two sealed bids.
The hearing, presided over by U.S. Bankruptcy Judge Christopher Lopez, has been adjourned until Tuesday afternoon, during which the trustee responsible for overseeing the sale of Jones’ assets is anticipated to testify. Judge Lopez may ultimately decide to invalidate The Onion’s bid, designate the Jones-linked company as the winner, or even organize another auction, among other options.
Jones, along with First United American Companies, the entity operating a website that markets nutritional supplements under his name and that lodged the competing bid, has claimed that malpractice occurred during the auction wrapped up on November 14. Meanwhile, both the trustee and The Onion refute these claims, suggesting that Jones and his associated company are simply being sore losers.
This sale of Infowars falls under Jones’ personal bankruptcy case, initiated in late 2022, after he was mandated to pay nearly $1.5 billion in defamation damages. These lawsuits were filed in Texas and Connecticut by families of the Sandy Hook Elementary School shooting victims. Jones had previously propagated baseless conspiracy theories, asserting that the tragic event that took the lives of 20 children and six educators was a ruse designed to promote gun control policies.
The monetary proceeds from the Infowars sale, as well as many of Jones’ personal assets, are primarily intended to satisfy the financial judgments awarded to the Sandy Hook families, although some funds will also go towards addressing other debts of Jones.
The Onion proposed to acquire Infowars’ assets for $1.75 million during the bidding, while First United American Companies offered $3.5 million. However, The Onion’s bid included a commitment from several Sandy Hook families to relinquish some or all of their auction entitlement, thus providing an additional $100,000 to the other creditors.
Trustee Christopher Murray endorsed The Onion’s bid, asserting it was more beneficial for creditors because it yielded a larger payout. The valuation for The Onion’s bid was set at $7 million, reflective of the cumulative figure that would equate to a similar outcome for the other creditors.
Tanenbaum corroborated the $7 million assessment and contended that The Onion’s proposal adhered to auction regulations. In response to a query from Jones’ attorney, Ben Broocks, regarding how the families’ commitments inflated The Onion’s value, Tanenbaum explained that an alternate purchase price would have to exceed this figure to provide equal benefits to the creditors.
During the proceedings, Broocks expressed skepticism over how a bid of $1.75 million could surpass one of $3.5 million, dubbing the situation “voodoo economics.” Both Jones’ legal counsel and a lawyer representing First United American questioned the decision to forego a live auction round, which they had anticipated following the sealed offers, though the judge’s directive rendered such bidding discretionary.
Jones has publicly criticized the auction process on various platforms, labeling it as “rigged” and “fraudulent.” Joshua Wolfshohl, representing Murray, defended the auction process, claiming that no improprieties were involved in the proceedings, and characterized the grievances from Jones’ camp as baseless conspiracy theories lacking substance.
Murray, along with The Onion and the Sandy Hook families, have denied any allegations of misconduct. In a court document, Murray described these accusations as an inappropriate attempt by a dissatisfied bidder to taint an otherwise legitimate auction procedure.
The assets up for auction included the complete inventory of the Infowars studio based in Austin, Texas, in addition to its digital and social media properties, archives, and product trademarks. Jones has utilized this studio to broadcast his far-right shows across various channels, including his X account and radio stations.
In preparation for a potential Infowars takeover by The Onion, Jones has established another studio alongside alternate websites and social media accounts. He noted that he could continue using Infowars if the new owner is amicable toward him.
While Jones contends that he is exercising his free speech rights in appealing the substantial judgments, he has admitted that the Sandy Hook shooting did occur. Recently, a Connecticut appeals court reduced his original $1.44 billion judgment by $150 million but upheld the remaining award, which his legal team plans to contest in the highest court of Connecticut. Additionally, Jones is pursuing an appeal concerning a $50 million verdict in a similar Texas lawsuit.