The 39.4 metre yacht My Saga has sunk in southern Italy, around eight nautical miles from Catanzaro Marina in the Gulf of Squillace.
The sinking comes after the crew reported taking on water via the stern in the early hours of August 20. The crew was evacuated and a tug was in the process of towing My Saga to shore when she sunk at around 1pm local time.
All crew members were rescued from the vessel with no injuries reported.
A statement issued by the Italian Coast Guard noted that worsening weather conditions made it challenging for the tug boat to bring her to port.
Video footage circulating on social media indicates a heavy starboard list before the yacht finally foundered stern-first.
Water depth in the area is around 200 metres.
It is understood the yacht was attempting to travel between Gallipoli in western Turkey to Milazzo on the northern coast of Sicily when the incident took place.
A Romanian patrol boat intervened on behalf of the European Border and Coast Guard Agency and a second patrol boat from the nearby Italian city of Crotone both stepped in to rescue the crew and attempt the tow the yacht to safety.
Built by commercial shipyard Cantieri San Marco, My Saga was delivered as Yuko in 2007. The La Spezia-based yard no longer exists, and several hulls were inherited by Monaco Yachting and Technologies. The yacht was designed by renowned designer Tim Heywood.
An investigation is pending.