Alright, not sure which part of this you don't understand.
The private key is NOT being cracked. Cold storage, which contains the private key, is being hacked. Once the cold storage is breached, the privaye key is exposed.
Again, the Bitcoin network is not being compromised. Hardware wallers used to store it can be. Even Bitfi, the hardware, can be cracked. However, it does not store the private key so there is nothing to take.
you dont understand
paper wallet = cold storage impossible to hack
for hardware confiscation is needed and using a handheld device is the lowest security with the highest risk for loss/theft