The businessman will press ahead with plans to set up a fund that will see season book money pooled and only given to the club once fans have been given security over Ibrox and Murray Park.
The war of words was stepped up just days after Rangers announced an increase in prices for next term.
Chief executive Wallace is due to reveal the outcome of his review of Rangers' on and off-field operations next week but King has claimed chairman David Somers intimated that it is only once the board have banked what could be millions of pounds worth of supporters' cash that plans of Wallace would be made public.
And the former Ibrox director has apologised to fans for calling a truce in the battle for control of the club earlier this year.
King said: "The chairman has advised me that the board will now only issue the review at the end of the season ticket renewal period and it will consequently not be timeously made available to fans.
"Disturbingly, the chairman has advised me that the true intention of the board had always been to delay issuing the review until funds had been largely collected.
"I apologise to all fans for wasting time by lending credibility to the board's false representations. I was wrong to give them the benefit of the doubt.
"At least we now can no longer have any uncertainty about governance at the club."
King's plans for a season ticket trust fund have been given approval by fans, including the Rangers Union of Fans, and moves will proceed at pace after the board made their pitch for fans' cash this week.
Richard Gough will be a custodian of the bank account and King has urged fans to act or risk losing their club.
He said: "An announcement will shortly be made providing details of a bank account that season ticket money can be paid into as an interim measure.
"The specific terms and conditions of this account will be made available to fans, including the basis on which funds will be advanced to the club and the basis on which funds will be returned to fans.
"As a minimum, the board must provide the club property as security against the season ticket money.
"I recognise fans will have anxiety about 'betraying' the club and the risk of loss of a cherished seat at Ibrox.
"However, the time has come when the trade-off is a potential loss of a seat against the loss of the club. That would be the real betrayal.
"This board has lost its right to be dealt with."
The Gers board had previously hit out at the proposals that could see season ticket cash withheld and expressed fears over Rangers' future.
But King has urged supporters to cut off all financial support as he steps up his bid for control at Ibrox.
He said: "It is common cause that the club is not a going concern without access to the season ticket loan from the fans.
"It is also common cause that the season ticket money will only provide partial relief in advance of a more permanent recapitalisation.
"I have hitherto urged restraint in dealing with the board.
"I believe that it is vital that fans now withhold season ticket money from this board and similarly refuse to support the club by way of the purchase of replica kit or any other retail product."
Rangers last night replied in a statement on their website, which read: "The Board of Rangers Football Club notes with astonishment the statement issued this afternoon by Dave King.
"In his statement Mr King makes a number of untrue allegations against the Chairman and the Board of Rangers Football Club alleging bad faith and false representation.
"The Chairman and the Board refute all such allegations in the strongest terms and have referred Mr King's statement to the Club's legal advisors.
"It is extremely disappointing that Mr King should consider it appropriate to issue this latest statement, clearly designed to unsettle and mislead Rangers fans, on the eve of an important Scottish Cup semi-final match."