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Once you have logged into the system, in the upper right click on the Admin Button with your username. In the drop-list, click on Settings > Website Settings > Products, you will see a setting for Category Images. By default this will be set to Show your Category images, and you have the option to Hide them. If you make a change in the settings, be sure to remember to scroll to the bottom of the screen and click Save, or your changes will not display.

Also, after you make this change, if you decide to change it back to show the images, it may take the system a few minutes to index and update the change and display them once again.