On her arrival in England on April 9, 1865 the "Chameleon" was seized and sold by the British authorities and was about to enter the merchant service when the United States instituted suit for possession. She was awarded to the United States Government and handed over to the consul at Liverpool on April 26, 1866. "Chameleon" was sold at auction on orders from the consul on 14 June 1866. She sold for £6,400. On 21 July 1869, telegrams were received at New York stating that she had been wrecked near Yokohama, Japan with the loss of 22 lives.