This seems really bizarre as surely it was not necessary for the CEO to manually input a password anytime someone wanted to make a withdrawal from a cold storage account. Long-term storage is always slower, like using Amazon's AWS Glacier storage services. But by design, Bitcoin is accessed by a user's password and password phrases which, if lost, can never be retrieved. But I do not see how it would work that way at the exchange. Unless this was the WORST cryptocurrency exchange in existence.
I see many folks in this thread do not understand cryptocurrencies. That's OK, I'm not going to get into it but I will say that Block Chain technology will be used in MANY other areas. It already is.