Sure but for some of these stories, the provider is clearly just incompetent. I’ve read of PayPal holding $100,000 for 6+ months with no reason given or response. That goes far beyond an anti-fraud measure.
That said the fastest way to a resolution is often exactly this. Either get a lawyer to send a letter saying you're gonna file in court, or just file for arbitration yourself.
If money on that scale is at stake, this is a comparatively cheap way to make sure a real human looks at the problem.