If you were friends with someone that had their kids taken away by child protective service for being on drugs would you stop being their friend?

I would not stop being their friend but I would stop doing anything that in any way helped enable their illness of addiction and would stop being around them when they were using.

No loans, no bailouts, no paying for things that then allowed them to buy drugs. I would not participate in an extended self-destruction and suicide.

It's likely they would regard that as cancelling the friendship.