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Pequeño gave the ruby to Captain Jack Sparrow in Tortuga, hoping the pirate would barter it for a good deal of money. Jack took the Eye, possibly accompanied by Will Turner to Formosa, where he found a buyer in the Chinese sorceress, Madame Tang. During the trade, Tang stole the gem, attacked Jack and Will and used it to awaken the Dragon Spirit in her temple. Tang succeeded, though when the spirit awoke it killed her, and pursued Sparrow and Turner.
The ruby was presumably destroyed.