Authorities said Friday that Smith was wanted on a weapons violation and fired a gun before two deputies shot him while he was inside a parked vehicle.
Police said some people vandalized buildings and stole from businesses after the shooting Thursday.
The AP reported that members of a task force were attempting to arrest a person who was wanted on a state warrant for being a felon in possession of a firearm when the person produced a firearm.
While some members of the crowd shouted expletives at the police on Thursday, overall the crowd remained peaceful. "I knew something wasn't right". The state investigators also said evidence indicates Smith fired his gun, saying a handgun and spent cartridge were found inside the vehicle.
Before the Thursday shooting, tensions were rising as crews removed concrete barriers around a Minneapolis intersection informally called George Floyd Square, where community members and activists left artwork and flowers in a memorial to Floyd.
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The state Bureau of Criminal Apprehension and the federal Bureau of Alcohol, Tobacco and Firearms both tweeted that they were responding to help investigate. A second person, a female who also was in the vehicle, sustained minor injuries from glass debris, the service said.
The Minneapolis Police Department said it was not involved in the incident. Hughes said he didn't know Smith to carry a gun, and Hopkins also said she didn't know that he had one. "You're the U.S. Marshals", he said.
Video shared on social media showed a crowd of mostly masked individuals breaking into a T-Mobile outlet, with two men hoisting a third as a battering ram to shatter the window.
The agencies making up the task force were not revealed but did not include Minneapolis police, the department whose officers were involved in Floyd's death, the Minneapolis Star Tribune reported. Nine people were arrested on possible charges including suspicion of riot, assault, arson and damage to property.
The city has been on edge since the deaths of George Floyd, a Black man who died a year ago after he was pinned to the ground by Minneapolis officers, and Daunte Wright, a Black motorist who was fatally shot in April by an officer in the nearby suburb of Brooklyn Centre. Former police officer Derek Chauvin was convicted of second-degree murder, third-degree murder, and second-degree manslaughter in April. Former Brooklyn Centre Officer Kim Potter is charged with manslaughter in Wright's death.