Wallace left her desk for the last time on Wednesday.
Deputy chairman Simon Eddy said he could not comment on employment matters but confirmed Wallace was no longer employed by BBO.
Her departure comes a week after the board announced it had accepted the resignation of its general manager, Markham Brown, and just days after it was revealed the organisation faced a debt of more than $100,000.
In a memo sent out to the basketball community, the board described BBO's financial position as ''unsustainable''.
''Significant debts have been incurred and urgent action is required to improve the organisation that we are all passionate about.''
There was no mention of Wallace's redundancy, but the board signalled its intention to break the Nuggets franchise away from BBO, and reassured the community the board would ''take on various operational roles until a more sustainable financial situation has been created''.
''We are working hard to make sure that both BBO and the Nuggets reach their potential and have a long-term viable future.
''The board has been working on a number of promising sponsorship and funding options and is confident that it can continue to bring the game of basketball to the community as well as maintain and manage the Nuggets as a strong force in the NBL.''
