I've had my account frozen by Paypal a few times before, but for totally legit reasons. I called up, spoke to them, sorted it out, and they unfroze my funds once the issue was resolved. Not sure if phone support is available in all countries.

Usually, your Paypal account will get frozen the first time it has a $1000 balance and you just need to provide evidence that you are actually operating a business.

Was your dad running his ebay business on a personal paypal account? Mine was attached to my registered company, linked to my company bank account.