Paleontologists knew that ancient crocodiles hunted alongside theropod dinosaurs but the new discovery suggests that they may have been top of the food chain.
"Until we deciphered the story behind Carnufex, it wasn't clear that early crocodile ancestors were among those vying for top predator roles prior to the reign of dinosaurs in North America," said Dr Zanno.
However as the Triassic drew to a close, extinction decimated both early dinosaurs and ancient crocodiles with only small-bodied crocodylomorphs and theropods surviving.
"Theropods were ready understudies for vacant top predator niches when large-bodied crocs and their relatives bowed out," added Dr Zanno. "Predatory dinosaurs went on to fill these roles exclusively for the next 135 million years."
The ancestors of modern crocodiles then took on a role similar to foxes or jackals, with small, sleek bodies and long limbs.
"If you want to picture these animals, just think of a modern day fox, but with alligator skin instead of fur," said Susan Drymala, graduate student at NC State and co-author of the paper.
Because the skull of the Carolina Butcher was in pieces, it was difficult to visualize what the complete skull would have looked like in life.
So to get a fuller picture the researchers scanned the individual bones with the latest imaging technology - a high-resolution surface scanner.
Then they created a three-dimensional model of the reconstructed skull, using the more complete skulls of close relatives to fill in the missing pieces.
The discovery was published in the journal Scientific Reports.