Rise of the Rookies
Peter Krauss was a Hero assembled in the Hero Factory Assembly Tower. His Hero Core was white and his main body armor was blue.
Peter became friends with another Hero, known as Von Ness. When Ness was drafted into Kirk Thresher's team along with Preston Stormer, he ran away in cowardice, blaming Stormer for the entire accident. In secret, Krauss also blamed Stormer and vowed revenge.
Several years later, Peter Krauss was promoted to team leader of the Delta-7 team. When travelling to an asteroid belt, a mysterious black hole appeared out of nowhere and sucked him and the six others in the team in. Inside, a much upgraded Von Ness captured them. Krauss was about to kill Ness when he realized that he was Von Ness, his old friend. Von Ness told Krauss that he had a plan to destroy Stormer (Who by that time had been commanding a squad of his own as well). Krauss listened and helped Von Ness (Who insisted to be called Von Nebula) knock out the six members of Delta-7 Team, and then they took them to the planet Talos V.
The Delta-7 members had their memories wiped, then were given several times too much fuel. The result was XPlode, Rotor, Corroder, Meltdown, Thunder, and Vapour. Pleased, Von Nebula sent them to worry Hero Factory. Krauss worked on the inside, sabotaging everything to do with the computers, so Nebula could defeat the heroes easier. But when the time came for Von Nebula to finish Stormer off, the rookie William Furno intervened and ruined everything, according to Krauss. When the villains were apprehended, they realized the secret about them, and soon everybody was looking for the "Hero Hunter" who had created Xplode and the others. Krauss was not captured and still led a newly-formed Delta-7 team, but he still silently swore revenge on Stormer.
Ordeal of Fire
Knowing that kidnapping heroes again would be too dangerous with the authorities closing in on the Hero Hunter, Krauss kidnapped four miners on Talos V and gave them so much fuel that the miners became more powerful than any hero. These became Fire Lord, Drilldozer, Jetbug, and Nitroblast. Krauss then returned to Hero Factory, acting like he barely survived an encounter with the fire villains. He demanded that heroes must be upgraded to fight the new threat. He was nominated as leader of the project, and chose two heroes, Julius Nex and Nathan Evo, among with himself, to be upgraded. While Evo and nex got all the publicity, he sneaked away for a "Top Secret Mission". He then helped the Fire Villains take over Refueling Station 83.
To his horror, Stormer and his team upgraded themselves as well. Knowing that the Fire Villains would not be a match for six upgraded heroes, Krauss fled, and was not caught. He eventually returned to Hero Factory, once again plotting revenge.
Krauss realized if he could defeat Stormer for real, he'd have to bring Von Nebula back into the equation. he stole Von Nebula's Staff and replaced it with a duplicate, and left it in Professor Aldus Witch's classroom. As predicted, Witch Doctor picked up the staff. He was going to put it back, but as soon as he touched it, the spirit of Von Nebula seeped into his body.
Under Von Nebula's control, Witch Doctor attempted to implant himself with a Hero Core to even his odds against the Hero Factory. He was caught by Stormer, who took him to court. Witch was found guilty, and still under the control of Von Nebula, exiled.
At first, Krauss was angry. But then Aldus contacted him, telling him that he had sought refuge on Quatros, and he realized it was a gift beyond his wildest dreams. Krauss went to Quatros and gave Witch the staff, and the whole thing went downhill for the heroes from there. But then, Rocka entered the situation. Stormer, Nex, Furno, Stringer, and Bulk arrived, and managed to remove the beasts of Quatros from the now-called Witch Doctor's control. After Alpha 1 Team finished its work on Quatros, Aldus Witch was brought to justice. He was given a fair trial, and was interrogated. Knowing that his spirit would be lost forever, Von Nebula's spirit exited Aldus's body. Relieved, Witch told the heroes the whole story. Krauss was caught, and finally jailed.
During a power surge at the Hero Factory Prison, the laser doors momentarily went out for about half a second. Krauss, who was leaning against the door at the time, fell out of his cell.
Being the only one out, Krauss was about to make a run for it, but then realized that if he released everybody else, they would follow him and make him their leader. Encouraged by this, Krauss once again stole the Black Hole Orb Staff, believing that the only way Von Nebula would have revenge would be if Krauss channeled his power himself.
As soon as he picked up the staff, Von Nebula's power coursed through his body. Von Nebula pushed for control harder than ever, and succeeded in completely taking over Krauss's body.
Von Nebula next broke into the Hero Factory Armory, where he stole dozens of weapons and armor to beef up Krauss's hero-sized body to the large body Von Nebula was accustomed to. He was noticed by Mark Surge, who only saw him for a split second, causing him to tell everyone that a Black Phantom was attacking Hero Factory. Given an idea, Von Nebula decided to call himself Black Phantom.
Next, he fired a meteor blaster directly into the supercomputer controlling the Prison. All the prison containers were deactivated, and every villain, monster, or criminal that Hero Factory had ever caught, escaped.
Black Phantom directed everyone escaping to hide at a different planet, that way Hero Factory would have to break the standard protocol and send each hero out on an individual mission. Black Phantom then lingered at Hero Factory and held Nathaniel Zib hostage. Due to this, all communications were cut. None of the heroes could contact each other.
Rocka, the only hero not on duty, was ordered to stop Black Phantom at all costs. Black Phantom beat Rocka easily and was about to destroy the golden hero once and for all, when somewhere inside Black Phantom's soul, Krauss awakened. He could understand Nebula's thoughts. And the thoughts were simple: Get a new, more powerful body and destroy the old one.
Krauss, who was in the old body, realized that Von Nebula was evil and that Krauss was wrong to help him. He realized that he could still do one good thing in his life, and that was fight for control.
Black Phantom knew what Krauss was attempting and began mentally pushing Krauss away from control of the body. While Krauss and Nebula fought for the body, they forgot about Rocka, who snatched away the staff, Von Nebula's life source. The spirit of Von Nebula was sucked out of Krauss's body, who allowed himself to be captured. the villains had no leader, and the heroes had communications, and all of this together caused all the escaped villains to be recaptured.
Krauss was questioned by Mr. Makuro, Preston Stormer, and Nathaniel Zib themselves. He finally told the heroes the truth, the final truth. For his bravery, Krauss was given a full pardon and was once again the Leader of Delta 7 team. Krauss is now on a mission to recapture Ethan Goldshadow.Krauss feels sad about him being sent to capture his old student.Krauss found him and struck a deal with him.He gave the plans for the new ocean armor. Krauss tries to look damaged so Hero Factory will make the ocean armor.