Updated

A national fraternity revoked its Indiana University chapter's charter and shut it down Thursday following the release of a video that appears to show a fraternity member having sex with a woman identified as an "exotic dancer" as others watch and cheer.

The national Alpha Tau Omega fraternity's action came just hours after the university announced it had suspended the campus chapter while it investigated the recording that surfaced on social media.

Alpha Tau Omega's Indianapolis-based national office said the "highly inappropriate and vulgar video" from a smartphone shows an event last week involving a 21-year-old member of the chapter and two female exotic dancers hired by one of the members.

It said the event involved about half the chapter and no pledge was compelled to participate.

"Regardless, the actions are contrary to the ideals and principles of Alpha Tau Omega and are highly offensive," ATO said in a statement on its website.

The 29-second video circulating on Twitter shows a fraternity member performing a sex act on a woman on a bare mattress, while more than a dozen men stand by watching, according to the Indy Star newspaper. A second naked woman is seen standing nearby.

Music can be heard in the background alone with yelling and cheering from the group, according to the newspaper.

IU issued a statement Thursday, saying, "The university applauds the national chapter's swift and strong action and is in full agreement with this decision."

"The office of the Dean of Students and IU Police Department are prepared to work closely with the national ATO organization to facilitate this action," the statement said. "Indiana University’s Office of Student Ethics will continue to investigate this issue as it relates to potential violations of the university code of student conduct."

University spokesman Mark Land said the school is investigating the incident to see whether the male student performing the sex act faces disciplinary action.

"We will take a look at the video and the entire incident to see if there are violations of the university code of conduct," Land told FoxNews.com. He also said the school does not believe the women involved are current or former students.

FoxNews.com's Cristina Corbin and The Associated Press contributed to this report.