Adelaide was found to have breached the AFL's COVID-19 training protocols last week, which has resulted in Butts and 15 teammates receiving a suspended one-match sanction.
Assistant coach Ben Hart has been stood down by the AFL for six weeks.
The decision came after the AFL integrity unit found the club breached training protocols on Thursday morning.
The investigation found the club had been compliant with the protocols during the training session, however, the breach occurred once the players separated into two groups.
The 2018 Shepparton premiership player is yet to make his debut for the Crows.
“We all have a very clear responsibility to ensure we do everything we can to stop the spread of the virus,” AFL general counsel Andrew Dillon said in a statement
“The protocols are clear and the actions in this matter, whilst not pre-planned, are a breach of them.
“We take this matter extremely seriously.
“We will not compromise the health and well-being of the community, and remind everyone in the industry — players, coaches, officials and staff — that they have a responsibility to adhere to the rules for the safety of everyone in the community.”
● Meanwhile, the AFL announced yesterday that no AFL-listed footballers would be allowed to play in second-tier competitions this year.
The result of that announcement means Port Adelaide and Adelaide football clubs will not participate in the SANFL Statewide Super League this year.
The decision means this year's SANFL will be an eight-team competition, with Adelaide-listed Butts unable to feature in the state-based league.
Yesterday's shock announcement comes after the competition's chief executive said no SANFL club would be permitted to pay its players.
Butts’ premiership teammate Nik Rokahr — who joined Norwood last summer — will rely on the Federal Government's JobKeeper payment like the rest of the players in the league.
Players, coaches and umpires will work without payment, as the competition tries to ensure the survival of its clubs during the coronavirus pandemic.