While in Water 7, the Spicy Spice Pirates attacked a merchant ship, stealing all the spices they were transporting. Their captain's bounty was spread across the city, where it was picked up by the Straw Hat Pirates, who tracked the pirates down to a side canal.
After an attempt at poaching Sanji, the Spicy Spice Pirates and Straw Hats held a short fight, with the Straw Hats quickly defeating them. They returned the stolen spices and claimed Terrance's bounty.
Whether the Spicy Spice Pirates are still active after Terrance joined the Bounty Pirates is unknown.
