TMZ said according to a witness, Banks then threatened guests, calling out: "You would love it if I broke my glass, stabbed you guys in the throat and blood would squirt everywhere like some real Tarantino s***.''
Witnesses told the website she then started dropping "n-bombs'.'
The rapper is then said to have reached for her glass and cocked it back - before Crowe stepped in to grab her in a bear hug and carried her out of the suite.
Security guards were quickly on the scene and removed Banks from the hotel's grounds.
Banks has since responded with a different view of events; saying Crowe assaulted her and called her a n*****.
Banks, 25, posted a photo of herself on her official Twitter page, saying: "No woman should ever fear speaking out about being a victim of any form of assault. No woman should be treated like this.''
She ended her post with the hashtag: #JusticeForAzealia