The body of the 23-year-old man was recovered by police divers at Sullivans Cove on Hobart's waterfront about 7.45am on Tuesday.
He had been reported missing by crewmates of Perseverance at 3.55am, prompting an unsuccessful police boat search.
Perseverance, an around-the-world sailing research ship, was docked in Hobart after finishing an Antarctic leg.
The crew was due to change over and fly to Melbourne on Tuesday, Tasmania Police inspector John Toohey said.
"They're very distressed, which is understandable," he said.
"They're a tight-knit group. They've been working together for the last couple of weeks. It's a tragic incident. They were enjoying themselves."
Initial investigations indicated the man jumped off a mast and then got into trouble, Insp Toohey said.
"Early indications are that there may have been some alcohol involved, but that will form part of our investigation," he said.
Police are working with Interpol and the French embassy to inform the man's next of kin, and will interview the crew and potentially other witnesses.
A report will be prepared for the coroner and Insp Toohey said the extent of the vessel's safety equipment would form part of investigations by WorkSafe Tasmania.
People were urged not to swim at night, the senior officer added.
"You don't know what is under the water; especially in the Hobart waterfront area, there are lots of obstacles and obstructions," he said.
In 2024, a coroner who investigated two drownings at Hobart's waterfront said the installation of safety fencing was not practical because the area was a working port.
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