Earlier quoted context omitted.
As a CTO, you should make yourself aware of what a scream test is https://www.v-wiki.net/scream-test-meaning/ Basically, you just turn stuff off, and make people scream, while they can turn it back on. You could have did this a month ago, as a critical warning of impending termination of systems. You didn't do that. Instead, you sent a few emails, which itself isn't even a guaranteed delivery. Again, as a CTO, you sh…
You can't turn system off if customer paid for it. That's the breach of contract. If you keep customer data after payment period, you're losing money. So scream test will cost you money. They decided that this cost is not appropriate payment to compensate for possible reputation loss. Whether that's a good business decision or not, time will tell.
It takes years to build a good reputation and minutes to destroy it.