Budden was arrested Thursday evening moments before he was due to take the stage at the Best Buy Theater as part of the group Slaughterhouse, the New York Post reported.
Police said Eminem was at home in Detroit when Budden, most famous for his 2003 hit, "Pump It Up," was ticketed for marijuana possession. As Budden was being processed, police found an outstanding warrant for a 2007 violation for driving with a suspended license. He was arrested and booked at the Manhattan Detention Complex, popularly known as "the Tombs."
The concert began with fans noticing Budden missing and by the second song the rest of the performers told the more than 2,000 fans of the situation, the Post said.
The fans responded with a two-minute chant, "Free Joe Budden" while executives from Shady records tried to get Budden released.
"They had a few people running back and forth between The Tombs and the theater. Everybody was on their phones frantically texting and calling," a source said.
Budden pleaded guilty to driving with a suspended license and was released. He will be sentenced June 1 and will be fined $75, the Post said.