Stede, determined, planned to fence off the hostage English officer in the lawless pirate haven of Nassau, the Republic of Pirates. Oluwande cleverly persuaded Jim to release Lucius from the confines of the trunk. Stede and Lucius ventured into town, dragging the captive officer with them, intent on selling him. Meanwhile, Oluwande fretted over Jim's safety, knowing that Spanish Jackie, a formidable bar owner in the Republic, had put a bounty on Jim's head for slaying her beloved husband, Alfeo.
The foursome eventually found their way to Spanish Jackie's bar, where Jackie seemed oblivious to the disguised Jim. At the bar, Izzy Hands approached Stede, relaying a message that his boss wished to meet him; unaware that Izzy's boss was the dreaded Blackbeard, Stede refused. Jim, sneaking into the shadows of the back room, sought to reclaim their family's knife from Alfeo's mummified remains, but it was nowhere to be found.
A bidding war erupted between two pirates over the English officer, sparking a brawl that culminated in Stede shattering the jar filled with noses that Jackie had severed from misbehaving patrons over the years. Jackie threatened to slice off Stede's nose, but Jim recognized her knife as their own family dagger. Surprisingly, Jackie let Stede go unscathed after Geraldo, another of her husbands, informed her that Blackbeard had inquired about Stede.
As Stede stepped out of the bar, Geraldo intercepted him, revealing that he had a client interested in purchasing the hostage. Lucius, sly as ever, slipped Jim their family knife, which he had stolen from Jackie as she exited the bar. Geraldo guided Stede, Lucius, Jim, and Roach to his mysterious "client," who turned out to be the Spanish Navy. The Spanish captain stabbed Stede and arrested the pirates. Geraldo stripped away Jim's disguise, revealing their true identities and confessing that Jackie had known Jim's identity the entire time.
The Spanish intended to execute Stede by hanging, but their plans were thwarted by a surprise attack from Blackbeard and his crew, who came to Stede's rescue along with the rest of his pirates. Blackbeard addressed the grievously wounded Stede by his moniker, "the Gentleman Pirate," confessing that he had heard much about him.
