Nouns DAO invested $150,000 in a project called MOOØNBEANS to produce premium baked beans, but no product has been delivered. The funds were allegedly misused by Chris Mair, CEO of Sublime Butter, who was removed from his position due to erratic behavior. Mair claims personal issues derailed the project and denies fraudulent activity. The situation highlights the risks of DAO-based funding and the challenges in recovering lost investments.