University officials notified the fraternity of its decision and said the school is continuing to investigate members of the chapter and students who attended the party for violations of the ASU Code of Conduct, MyFoxPhoenix.com reported.
"At ASU, students who violate these standards will be subject to disciplinary sanctions in order to promote their own personal development, to protect the university community, and to maintain order and stability on our campuses, " ASU President Michael Crow told the station.
The controversy surround the party has prompted a new debate over whether the behavior was racist or an exercise of free speech.
"This is the United States of America, not the United States of I have a right to never be offended," one person posted on Facebook, AZCentral.com reported.
Pictures from the party made their way onto social media websites, depicting guests dressed in basketball jerseys, flashing gang signs and holding watermelon-shaped cups.