Gilbert Arenas Denies Snitching on Chauncey Billups and Terry Rozier

Gilbert Arenas is setting the record straight -- insisting he did not snitch on Chauncey Billups and Terry Rozier before their arrests ... saying their situation is on a "whole different level."

Arenas openly trolled Billups and Rozier after the NBA coach and Miami Heat player were busted by the FBI as part of a gambling investigation last week ... but he's adamant his antics were not an admission of a role in the whole scandal.

One example of Arenas' humor was a post on Instagram, where he was spotted carrying an "informant lunch" -- implying he ratted on Billups and Rozier.

Some folks didn't understand he was just playing around ... forcing him to address users during his live stream on Sunday.

"C'mon man, why y'all puttin' me in something like this?" Arenas said to the chat. "This is a whole different level."

Arenas noted that yes, he did say he would snitch ... but on his case. Remember, Gil was arrested in July for allegedly running an illegal underground gambling operation.

"I don't know what this gotta do with my case. Like, I don't think you just walk around telling on cases you don't know," Arenas said. "My case is different."

"I don't know what my case has to do with -- from gambling and giving information on NBA games. How does that have to do with me?!"

In true Agent Zero fashion ... Arenas, 43, ended the livestream by trolling again -- joking his situation is minor compared to Billups and Rozier, 'cause he didn't even get his own operation name.