It says it in the e-mail "If you would like to request reinstatement of your order, please email our Fraud Department at . Upon receipt of your inquiry, we will request the payment method account holder to provide the correct billing information as well as a viewable copy of his/her government-issued valid photo identification, such as a driver's license or passport. "
This happens quite often. If everything with your payment method is legal your account should be reinstated after you send them the required information.
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This is not a real reason for not using godaddy since they fix that kind of issues usually and it's normal to be suspicious on the internet. But if you want to find some there are a lot of other reasons why not to use them.