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Hi, I don't know if the my case can have any kind of relation, but I have the same problem while trying to open an SFTP connection to an Axway Gateway.
It I don't remove the line "SessionChannelClient session = openSessionChannel(eventListener);" into openSftpChannel I do get the exception: "The SFTP subsystem failed to start". The strangest thing is that I don't get any kind of error if I try to connect to a normal OpenSSH server. Maybe, in my case, the problem deals with the Axway gateway which is not able to work with multiple channels?