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''Zhemchug'' had put into Penang on 26 October for repairs and to clean her boilers; only one boiler was in service, which meant that she could not get under way, nor were her ammunition hoists powered. Against the advice of Admiral [[Martyn Jerram]], commander-in-chief of the Allied Fleet, Commander Cherkassov had given most of his crew shore leave, and left the ship with all torpedoes disarmed, and all shells locked away save for 12 rounds stowed on deck with only five rounds of ready ammunition were permitted for each gun with a sixth chambered.<ref>Staff ''Battle on the Seven Seas'', p. 128</ref>
On 28 October 1914, Commander Cherkassov was at the [[Eastern & Oriental Hotel]] in [[Georgetown, Penang|George Town]] with a lady friend. The remaining crew were having a party on board rather than keeping watch. The German light cruiser {{SMS|Emden|1908|2}} was disguised as a British warship and pulled alongside ''Zhemchug'' at a distance of {{convert|300|yd}}. At that range, ''Emden'' raised the Imperial German naval flag,
A court-martial held in Vladivostok found Commander Cherkassov guilty of gross negligence and sentenced him to 3.5 years in prison. His [[executive officer]], Lieutenant Kulibin, was sentenced to 18 months.
The bodies of 82 crewmen were buried in Penang; the other seven bodies were never recovered. The ship's {{convert|4.7|in|mm|abbr=on|order=flip}} guns were salvaged by the Russian cruiser {{ship|Russian cruiser|Oleg||2}} in December 1914. In the 1920s, the ship was partially raised and scrapped by British experts.
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