Shelton was said to have "died unexpectedly on Wednesday night" in a message which added: "We ask that you respect the family's privacy at this time".
An announcement which was posted on Rebekah's Twitter page confirmed her death and amassed considerable engagement, with members of the public paying tribute to the former reality TV contestant.
'Please stop spreading this news that I am dead, because obviously I'm not.
'I've been through hell today because someone used by Twitter account to write that stupid status.
"This person can't accept the fact that I'm happy, that I overcame all my problems and that I'm finally living my life happy", Shelton continued in Friday's video.
She concluded the video saying: 'I'm not dead'.
Rebekah appeared on Big Brother back in 2009, as Rodrigo Lopes where she finished in fifth place in the final.
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The reality star advised those who wanted to transition from one gender to another to think carefully about it, and disclosed she had 16 surgeries and had faced troubles in her personal relationships because of it.
Her latest tweet said: 'I'm not dead!
Rebekah began to live as a woman in 2012 and underwent a sex change in 2014. "I was not born wanting to be a transsexual, or a boy, or a straight boy, or a girl", she previously said of her transition.
Earlier we reported that the Rebekah Shelton, star of Big Brother in 2009 had died, it turns out, thankfully, that she is alive and well and living in Dubai. I'm not sure what I would do if I could go back in time'.
Sending all my love to her family and friends.
Shelton did not make clear whether she knew the person she claims hacked her account, or whether she would be pursuing legal action.
She told OK! Magazine: "At one point before my surgery I had to leave home, and for six months of my life I turned to prostitution".