The 20-year-old was filmed at a Bank Holiday gathering in London with Love Island contestants, ignoring social distancing rules.
Wolves, contacted by the Express & Star for comment, say that they will now deal with the matter internally.
Gibbs-White – who has previously urged people to stay at home – was in a now-deleted video on Snapchat, chatting with friends in an apartment in Greenwich, near the capital's O2 Arena.
Love Island contestants Georgia Steel, 22, and Elma Pazar, 27, are also seen dancing while people are drinking from red cups and inhaling on balloons.
There is no suggestion Gibbs-White or Steel or Pazar were inhaling on balloons, though.
Gibbs-White, from Stafford, is seen on the flat's balcony alongside the caption: "My brudda Morgan Gibbs pulled up ya na."
The party is said to have begun last Thursday night before finishing in the early hours of Friday morning.
Gibbs-White's rule break comes after, in March, he posted a video of him training from home on Instagram along with the caption: "Please stay at home and only go out if it is completely necessary.
"Now is the time to self-isolate, social distance and do our bit to support the NHS. They stay at work for us – let's stay at home for them."
It is unwelcome news for the club, who have been keen to help wherever they can during the Covid-19 outbreak, with owners Fosun donating thousands of protective masks to health workers in the city while Nuno Espirito Santo's squad made a six-figure donation to the Royal Wolverhampton NHS Trust.
Many former Wolves players have also made donations to the Trust, through a fund set up by former captain Karl Henry.
Gibbs-White, an England under-21 international, only made four league appearances for Wolves before the season was suspended due to the coronavirus pandemic owing to a back injury that sidelined him for a few months.