Holt and a teammate, who are both underage, were cited last week for illegal possession of alcohol.
IU Athletics said Thursday Devin Davis and Hanner Mosquera-Perea were "not living up to their responsibilities."
Junior Yogi Ferrell announced he plans to stay at IU for another year, saying he wants to leave a "legacy of accomplishments."
Indiana made its 38th NCAA Tournament appearance in the Midwest Regional and the No. 37 seed overall, facing Wichita State in Omaha, Neb.
The team earned the No. 10 seed in the Midwest region — a ranking higher than expected for a team “on the bubble.”
The 7th seeded Hoosiers battle 10th seeded Northwestern in the conference tournament tonight in Chicago.
The IHSAA is responding to the Feb. 7 courtside brawl between Griffith and Hammond High School's varsity basketball teams.
Indiana Board of Trustees approves Assembly Hall designs, and discusses Energy Savings Project.
The city is also slated to host the 2015 championship at Lucas Oil Stadium in April.
Crean says he wants to improve the decision making skills of his players.