“They came back to us, and they said . . . we believe every asset other than bitcoin is a security,” Armstrong said according to the FT. “And, we said, well how are you coming to that conclusion, because that’s not our interpretation of the law. And they said, we’re not going to explain it to you, you need to delist every asset other than bitcoin.”
It's distributed to poor countries interested in free soap. They don't reuse it within the hotel, and people that receive it know it's recycled.
I question if this is actually an efficient way of donating soap, it's quite an intensive process I wouldn't be surprised if this was one of those feel-good things that actual costs more than just making new soap.