It seems the American Coastguard had heard of our little sailing ship and had been searching the Straights of Juan de Fuca for 30 days looking for the Tilikum. They believed Voss was an escaped convict from a California penitentiary who was wanted for smuggling Chinese immigrants to the United States. They did not admit this though and simply said they believed the Tilikum was being used for smuggling goods from Victoria to Seattle and San Francisco. Voss had deliberately avoided the U.S. Coastguard by skipping the Western United States and Honolulu so perhaps it was true. He certainly kept Luxton amused with stories of smuggling the Chinese and of smuggling opium to Vancouver Island.
The Coastguard spotted the Tilikum 20 miles off Victoria but when they tried to catch her they hit a rock. The "Grant" was then towed by tugboat to Victoria where she sank 2 weeks later. This escapade cost the U.S. government about $10,000 which was more than the Tilikum was worth.
Luxton's brother George took a photograph of the "Grant" after she was towed back into Victoria.