This appears to be a sudden decision because Carter is one-half of the NXT Tag Team Champions with Wes Lee and he appeared on last night's NXT 2.0 show.
The news of Carter's release comes after his wife Kimber Lee (formerly Abbey Laith in WWE) accused Carter of domestic abuse.
Lee tweeted on April 4: "Hey @WWENXT this is my face after your tag champ @NashCarterWWE got wasted and hit me so hard he split my lip open. He told me I’m a wrestler so I’m always marked up. I’ve hid this for a year and even forgave him. But I can’t hide it anymore."
Carter has not publicly responded to the allegations as of this afternoon.