Eldest brother Lonzo joined the Lakers this year after just one season with UCLA, while youngest brother LaMelo Ball is still in high school but also on the radar as a future pro.
The moves come a day after coach Bill O'Brien said they had discussed the possibility of adding Colin Kaepernick in the wake of a season-ending knee injury to rookie Deshaun Watson.
"We are aware of a situation involving UCLA student-athletes in Hangzhou, China", UCLA said in a statement Tuesday. He told the newspaper the three players would not be playing in Friday night's game.
The sources said police had released the three on condition that they remain at their luxury hotel in Hangzhou while the legal process plays out.
UCLA said it is "cooperating fully" with local authorities.
In a statement on Weibo earlier Wednesday, LaVar Ball called the incident "unfortunate to both the Ball family and UCLA".
Pac-12 commissioner Larry Scott said the conference was directing specifics about what transpired to UCLA. "Whether in the United States or overseas, we expect our student-athletes to uphold the highest standards".
"I'm going to wait until I get more intel on what's going on", LaVar told ESPN on Wednesday. "Everybody is making it a big deal. It ain't that big a deal". Georgia Tech said none of its athletes were involved.