The boat, traveling off the island of Exuma, roughly 130 miles south of Nassau, was carrying 12 passengers - 10 Americans and two Bahamians - at the time of the explosion. He said both of his sisters, Stefanie and Brooke, were on the boat with their mother and stepfather Stacey and Paul Bender.
Her sister Brooke and father Paul received only minor injuries, while her mom broke several bones, per ABC7. Her mother Stacey also suffered a fractured leg and at least two broken ribs.
Stefanie Schaffer, 22, is in a medically induced coma, and is thought to be unaware both her legs have been amputated, her uncle told U.S. media.
After Saturday's incident she remained in critical condition in an induced coma in Nassau, reports US-based ABC News.
The name of the woman who died has not been released.
Bahama officials are investigating the cause of the explosion and fire, AP reported.
Twenty-two-year-old Stephanie Schaffer was among nine people injured when the boat exploded Saturday, killing a US citizen.
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In 2014 however, he finally returned to his roots and rejoined the Cavaliers where he has been for the past four years. James informed the Cavaliers on Friday that he would not exercise his $35.6 million contract option.
He was among four Americans airlifted to hospital in Florida, the US Coast Guard said.
Stefanie Schaffer, one of the victims on board the vessel, was identified as an American.
"The boat bursts into flames shortly after 9am".
Her brother George Schaffer posted on his Facebook page that surgeons amputated both Stefanie's legs below the knees.
Exumas and Ragged Island MP Chester Cooper said in a statement: "This is a sad day for Exuma and a sad day for our American friends".
A photo of the Schaffer family posted to GoFundMe page. It shows people jumping "into the shallow water in an attempt to rescue passengers in the burning boat", according to ABC News.