If You crack the password You are also the owner of the pkey, the rules are simple, who has the pkey is the owner of the coins, it is Your responsibility to keep Your coins safe and not accessible by anyone but You.
Yeah, that "your keys your coins" meme would work if you live in unregulated world. "Your responsibility" only goes so far in real world. Technically you own the coins because they transactions are permisionless, but in reality, things get less black and white when you try to cash out via fiat ramp.
Because what you are basically saying that if you put your money in exchange, they own it now, because they own the keys, so you wouldn't have any legal claim for them. And that what i was talking about: Legal claim
And it wouldn't be first time that governments just confiscate your private keys, but i guess with that logic, they can and they should because strongest own the keys and there's no law protecting your keys, because it's "your responsibility".