Limiting Russia’s access to the global financial system has been the West’s lever of choice to deter President Vladimir Putin from further escalating the invasion of Ukraine. New sanctions on hundreds of Russian businesses and people, including the country’s central bank and Putin himself, have devastated the Russian economy in a matter of days, prompting bank runs and bankruptcies.

A parallel network: As anyone who follows crypto knows, there is a growing alternative to the system that western governments have weaponized to punish Russia—one that is not fully within their control. Canadians became especially aware of that last month when, shut out by crowdfunding platforms like GoFundMe, anti-government protesters in Ottawa turned to Bitcoin for donations. Russians facing sanctions may now use crypto in much the same way.

The latest: Some of the world’s largest exchanges have said they’re staying put in Russia, even as companies like Apple and payments company Wise have suspended or restricted their financial services there. Binance, Kraken and Coinbase said they won’t blanket block Russian users, arguing that doing so would punish ordinary citizens—some of whom are turning to crypto as a lifeline in a collapsing economy. The policy has drawn scrutiny from some anti-money-laundering experts, according to Reuters. But the West’s use of the financial system to punish Russia has also gone against the crypto industry’s ethos, which holds that no one should control who can and can’t have access.

Ukraine support: At the same time, Ukraine’s use of crypto to solicit donations for its resistance efforts has demonstrated another reality. While crypto may be useful for evading sanctions, Ukraine has raised more than US$50 million in crypto donations, and is planning to sell NFTs to fundraise for its military. That’s certainly easier than waiting several days for a money transfer.

The takeaway: There’s an interesting question at the heart of all this. Can a system be neutral—or positive—even if it enables bad actors?