Badgers coach Paul Chryst announced the dismissal on Tuesday and said freshman running back Antwan Roberts had been suspended.
University of Wisconsin police spokesman Marc Lovicott said the 18-year-old Crawford was cited on misdemeanor charges of criminal disorderly conduct and disorderly conduct while armed.
Lovicott said Tuesday that police learned Aug. 22 about a fight between two people in a residence hall that had taken place the previous night. No one was stabbed or cut with the knife, he said.
Crawford was the only person named in the police department's release.
"There is much more to this story, but rather than try this case in the media, I will present the rest of the extenuating facts and circumstances to the proper authorities and ask them to consider those carefully in reaching fair and proper decisions," Crawford's lawyer, Chris Van Wagner, said in a statement.
School officials didn't specify the reasons for the disciplinary measures and said they would have no additional comment.
Crawford and Roberts both signed with Wisconsin in December as consensus three-star recruits. Crawford is from Eau Claire, Wisconsin. Roberts is from Nashville, Tennessee.
The 12th-ranked Badgers open their season on Saturday by hosting No. 19 Penn State.