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Error sending emails with phpMail and SMTP

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since yesterday the automated Welcome messages are not delivered. I noticed when I received a message that the welcome message was not delivered since it was marked as spam.

  1. I logged in the admin area and tried to send it manually again. I got an error "Could not instantiate mail function" since phpMail was enabled. 
  2. I then switched to SMTP and I received another error "Data not accepted"
  3. I checked the Activity logs and I see these errors:
Email Sending Failed - SMTP Error: data not accepted. (Subject: Digimouse - New Account Information)

WHMCS version: 7.5
PHP version: 7.2

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