There is a requirement to log in at least once every 30 days to keep a free hosting account active. Relying on an email as the sole reminder is not advised.
During end of first week in March, as part of our maintenance that was announced in mid December, we purged all accounts that had no login activity during the last 60 days prior, your account was well outside that 60 day mark and even more so outside of the 30 day requirement for free hosting. Prior to our purging you last logged into your account on December 7th.
Initially we said cutoff for restores would be one week, purge was started on the 4th or March, meaning in reality we should not restore anyone past Sunday 15th, though we extended it a little bit extra, but it was said that the last cutoff date would be on Sunday 22nd.
As for ftp account appearing to work, the old servers are online still but is scheduled to be taken offline in a near future, so if you have the server name (xo#.x10hosting.com) as your host in ftp, you'd be accessing the old server.
You're lucky though that the restore is still possible for your account, they'll be cleared out any day now (and I thought that they would have been already). I'm running the restore now and the account should be good to go in a few minutes.