Off the rugged coast of Loanco, in the Maule Region of Chile, a chilling legend has endured since the late 19th Century. On January 16th, 1892, the British steamship John Elder sank near the rocks of that coast, allegedly during a violent storm. The ship, which was rumored to be carrying a shipment of gold bars, never made it to port.
The accident sparked more than just historical interest - it birthed one of Chile’s most enduring marine myths.
The Guardian of the Gold[]
Treasure hunters, divers, and adventurers have long been drawn to the area, eager to recover the lost gold. But time and again, they vanish - or return in terror. Survivors speak of a monstrous sea creature that rises from the depths whenever someone gets too close to the wreckage. Though never definitively identified, the beast has gained several names: “El Pulpo del John Elder,” “El Kraken Chileno,” or simply “La Bestia.”
The motif of a creature guarding treasure is ancient and widespread: dragons over hoards (Beowulf), serpents guarding sacred lakes (Mapuche Ñamku), or even ghost ships like El Caleuche.
Despite not always being directly described as an octopus, the earliest written description comes from Oreste Plath in his seminal book Geografía del Mito Chileno:
“A sea monster with many arms, big eyes and steel jaws, jealously take care of them! Sunken treasure deliver it to its legitimate owners.”
But therein lies the tragedy: the ship’s rightful owners, its crew and passengers, are long dead. The monster doesn’t know that. It remains a loyal guardian, waiting, watching, protecting what it believes is not yet meant to be disturbed. This creates a tragedy of loyalty: the octopus continues to serve masters long dead, evoking both horror and pity.
The ocean in Chilean myth is rarely neutral - it is capricious, spiritual, and dangerous. Beings like the Trentren Vilu and Kai Kai Vilu show the sea as both a judge and a force of memory.
Modern Encounters[]
The colossal squid (Mesonychoteuthis hamiltoni)
To this day, sailors and fishermen off the coast of Loanco claim to see dark shapes slithering beneath the surface, especially during storms or when salvage vessels approach. Their stories tell of enormous tentacles, water that churns without wind, and the feeling of being watched by something intelligent, ancient and furious.
It's a theory that the reports may be sightings of colossal or giant squids, or an unknown species of giant octopus native to Chile.