The ship sank in a hurricane in September 1857, along with 425 of her 578 passengers and crew and 30,000 pounds (13,600 kg) of gold, contributing to the Panic of 1857.

By September 11, the 105 mph (170 km/h) winds, and heavy seas had shredded her sails, she was taking on water, and her boiler was threatening to fail.

A bucket brigade was formed, and her passengers and crew spent the night fighting a losing battle against the rising water.

In the immediate aftermath of the sinking, the greatest attention was paid to the loss of life, which was described as "appalling" and as having "no parallel" among American navigation disasters.

[3] Commander William Lewis Herndon, a distinguished officer who had served during the Mexican–American War and explored the Amazon Valley, was captain of Central America and went down with his ship.

The ship was located by the Columbus-America Discovery Group of Ohio, led by Tommy Gregory Thompson, using Bayesian search theory.

A recovered gold ingot weighing 80 lb (36 kg) sold for a record $8 million and was recognized as the most valuable piece of currency in the world at that time.

[5] The Columbus-America Discovery Group's eventual discovery of the wreckage may have been spurred on by initial interest by Harry John, an heir to the Miller Brewing Company fortune who, near the end of his life launched unsuccessful, haphazard treasure hunts funded by a supposedly charitable foundation he had run for decades.

[7] Thompson was sued in 2005 by several investors who had provided $12.5 million in financing and 2006 by several crew members over a lack of returns for their respective investments.

[7] Thompson was located in January 2015, along with assistant Alison Antekeier, by United States Marshals Service agents and was extradited to Ohio to provide an accounting of the expedition profits.

[8][failed verification] In March 2014, a contract was awarded to Odyssey Marine Exploration to conduct archeological recovery and conservation of the remaining shipwreck.