I'm having the same problem. I would suggest to focus on why that message is happening ("
Error in login async task: Can't read key due to internal IO problems").
Exactly same diagnostic, same issue. Keys created with Connectbot work in programs such as ftpcafe with no issues, but your app throws a very fuzzy error such as "Can't read key due to internal IO problems".
I paid for this app just for the only feature which was SFTP syncing support with SSH keys, as no other app has this functionality, but I'm not getting what I paid for :(
I also sent you a log file just in case you need it, but it's approximately the same as this one has posted here...
Is this a bug in your app? Because other apps seem to be able to use perfectly all the Connectbot created key pairs, yours doesn't work. Am I missing something? Please fix this ASAP, thank you :)