Whats happening to you is an absurd abuse of power. Call the EFF, get a good lawyer, and get in front of a judge as soon as possible. Call your senator, your representative, and the local media. Don't annoy the secret service agent who is destroying your business because it likely won't help.
Yeah, you need an experienced lawyer and you need to go after GoDaddy immediately. They are at fault here. The terms of any user agreement may be invalid.
Next, you need to spend 100% of your time raising hell about this. This story has all of the marks of stuff the tech press loves to eat up.
#1 Godaddy is run by a bunch of assholes who walk all over their customers rights.
#2 The secret service is still full of a bunch of buffoons. These are the same guys that raided a roleplaying game company because they couldn't tell the difference between an imaginary game and a hacker manual. I'm sure the press would like to answer the question, are they still hiring FBI rejects?
You have to turn this story the other way around. You can make jotform a name people remember.
I've used jotform myself for quite some time (2 years or close to it?) It is a great service. Obviously you were doing nothing illegal, and were going to great lengths to stop the bad guys. Thats a news story everyone wants to hear.