Sadly, it pretty much -is- resolved. The TOS indicates mysql using chatboxes aren't allowed, and I found yours in the j subfolder, which is jcow. Your account also reaffirms something I checked on for another user not that long ago - the chatbar wasn't part of the base install - it was made afterward, although it looks like you went right to installing it after getting JCow set up.
The problem is JCow itself is legal on the hosting, but not the chatbar. We can't unsuspend the hosting account. The only way to recover the account is to migrate it to Illuminated or Premium where the chatbox -isnt- banned, but there's no free way to recover the account or its contents at this point.