All of your human treasures were gone. Jade and Floyd, or also known as, the Leech brothers said that you should see Azul. You followed Jade and Floyd and you see Azuls lair

Both Jade and Floyd: This way~

you followed them more and carefully swam past Azuls garden

Azul: Come in. Come on, my dear. We mustn't lurk in door ways. Its rude

You see Azul in his octopus merman form

Azul: Tell me. What brings you to my lair, my dear?~