Crete is ~8000km2 so this "continent" would be <30000km2.
That makes it less than half the size of Sri Lanka
Big enough to host a significant culture or proto-culture leading to a rosy generational memory, small enough that it can rather easily be sunk/destroyed by a disaster with only local impact (as opposed to the completely insane representation of a continent basically covering the current indian ocean in the linked article)
Sure, Crete itself hosted a very significant culture
http://en.wikipedia.org/wiki/Minoan_civilization
which disappeared (probably) due to a natural catastrophe (Thera eruption, 600 times bigger than Eyjafjallajökull)
While the article does not give a date, it sounds like this "lost continent" has been lost for many millions, and possible a billion, years. It sounds like it predates humanity, let alone civilization.