There is no historical figure named "Israel Hands." The name belongs to a fictional character in Robert Louis Stevenson's Treasure Island (1883).
Stevenson may have drawn the name from a real pirate: Israel Hands (also known as Basilica Hands) was a lieutenant of Blackbeard (Edward Teach). He was captured in 1718, testified against corrupt officials, and reportedly died in poverty in London—not in a sword fight with a cabin boy.
If you mean the Treasure Island character: **shot by Jim Hawkins, then drowned.** If you mean the historical pirate: **died obscurely in England after 1718.**