This was passed along to me from our Mom's Group email list. It was news to me. The recall was announced for a product known as Aqua-dots in the US and sold under the name Bindeez in Australia, where it has also been recalled.
From the article:
The toy beads are sold in general merchandise stores and over the Internet for use in arts and crafts projects. They can be arranged into designs and fused when sprayed with water.
Scientists say a chemical coating on the beads, when ingested, metabolizes into the so-called date rape drug gamma hydroxy butyrate. When eaten, the compound _ made from common and easily available ingredients _ can induce unconsciousness, seizures, drowsiness, coma and death.
You can read the full text of the article here.