HAPI is an on-chain cybersecurity protocol to create trustless Oracles. If connected to HAPI, any CEX like Coinbase or Binance will be warned in case stolen funds are deposited on their platform. An exchange will be able to block those funds until the situation is resolved.

With the HAPI smart contract and the Oracle DEXs like Uniswap, Sushiswap will be able to identify suspicious wallet addresses and reject any transaction request to prevent money laundering.

With a decentralized security audit database, DEXs and CEXs can access info on whether the specific smart contract has undergone a security audit. If not audited, the crypto exchange can notify the trader on possible risks or even impose a limit for buy/sell order amount, or restrict any operations with such high-risk tokens.