Smith was sent Monday to the Erie BayHawks, the Knicks' affiliate. He hasn't appeared in an NBA game this season.
Smith is the younger brother of Knicks guard J.R. Smith, which coach Mike Woodson said would be considered in October before making his final cuts.
J.R. Smith was fined $25,000 by the NBA last week after firing back on Twitter at Detroit's Brandon Jennings, who had posted a critical tweet about Chris Smith being in the league while other players he thought were better aren't.
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