Wait they seized all your domain names too? I don't think they can do that. What is the status of your domain names on whois?
( Also, you should have backups, but I guess now you know that. )
The best day of my SEO life was the day when I finally got out of the 60 day Godaddy block on my domains, trying to force me in, and when they tried to withhold one of my domains using their private registration system. When the 60 day thing expired, I got the hell out of there and never looked back.
( At Godaddy if you have a private registration, they can seize your domain unless you can recover it. Private registration means they own the domain and you trust them. )
All of their practices are questionable. Maybe not illegal, but surely they work at the edge, keeping you at a disadvantage at all times.
Anyone doing business with Godaddy is just betting to go through this sort of thing sooner than later.