Many years ago, while he was the Captain of the notorious pirate ship The Black Pawkeet, ol' Cap'n Bloodhook was tossed overboard in a storm. Everybody thought he had died, but his crewmates were a bit wary of ol' Bloodhook, knowing that he could survive anything nature threw at him. His crewmates formulated a plan, they would take all the treasure from the ship and bury it somewhere on Krawk Island. If he ever came back they would say they were raided and the treasure was stolen.
It just so happened that Bloodhook had survived, and he had found out what his mutinous crew had done. When he climbed back on board he gave a thunderous roar and leapt to the attack. Not a single person other than Bloodhook survived that bloody battle. The secret of where his treasure was buried was lost forever.
Bloodhook later resurfaced to attack Hannah in the Pirate Caves, after she stole his prized treasure, the Mermaid's Tear. Hannah buried him alive using his own explosives, and he was presumed dead as his ship passed into the hands of Garin and his crew.
However, Bloodhook had survived, laying low to avoid detection, and will resurface eventually.