If the problem is that accounts were being frozen without due process, then couldn't it be solved by adding some due process to it, instead of just banning freezing accounts outright? Treat it more like an arrest. People who are arrested still have rights; it should be the same here. It should be strong enough to limit criminals while still allowing the innocent proper recourse.

Have a version of the writ of habeas corpus (habeas numus?) to quickly undo unlawful freezing. Maybe allow small amounts of money to be released to the accused, large enough to live on but too small to be of much use to criminals. Have an exception for paying for a lawyer. And if they're cleared, require banks not to keep records of the freezing to prevent discrimination.

(Discussions of this topic should also all include a mention of civil forfeiture, which is effectively when police officers are legally allowed to rob you. This is a thing that already exists and happens regularly.)