That's not always true. There are plenty of people that had their funds frozen while they didn't do anything against their policies. I personally know a few people that used to offer their coding skills to people in return for payments through PayPal. These people had their balance frozen numerous times while they didn't do anything wrong.
The only word that PayPal gave them after un-freezing their balances, was that investigations turned out that nothing illegal or against their policies has happened. No sorry, or whatever. But in the meantime, they couldn't access the money that they needed to pay bills with since coding is a big part of their total income. Ridiculous. Good thing is that they now accept Bitcoin too, but through a payment provider that converts their coins directly to fiat. Either way, they ditched PayPal.