Kansas State's Jamar Samuels was suspended by the school Saturday morning due to a $200 wire transfer from his summer-league coach.
The news was first reported by Austin Meek of the Topeka-Capital Journal.
Curtis Malone told CBSSports.com that he was unaware of the rule that he wasn't able to give money to one of his former players.
"If I knew it and wanted to hide it, I would have done it differently," Malone told CBSSports.com. "The kid's family doesn't have anything and he called me for money to eat."
Samuels, who received the transfer on Monday, was informed of the decision on Saturday morning and did not play in the loss to Syracuse.
"The kid didn't do anything wrong," Malone said. "To be honest, I didn't think I did anything wrong, either. If a kid who plays for me needs money to eat, I'm going to help them."
Malone said that Samuels, who started 29 games this season and averaged 10 points and 6.6 rebounds, has played in his DC Assault program since he was 13 years old.
"I'm not an agent," Malone said. "And I have no desire to be one. If I wanted to be one, I could."