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The Steel Clan was defeated, however, and Xanatos was convicted for receiving stolen property.

Xanatos initially posed as the Gargoyles' friend, convincing them to "acquire" technology from his rival Cyberbiotics for him and ultimately attempting to destroy the gargoyles once their replacements, the Steel Clan, came online. With the castle "above the clouds," Xanatos successfully released the survivors of the Wyvern Clan from their frozen sleep. Xanatos learned of Castle Wyvern from Demona, the only remaining Gargoyle from the Wyvern Clan, and proceeded to purchase the castle and transport it, brick by brick, and reconstruct it atop his New York skyscraper, the Eyrie Building. Despite his father's belief that Xanatos did not deserve the gift that had launched his career, Xanatos continued to claim that he would one day prove himself a self-made man. Xanatos's holdings include Xanatos Enterprises, a genetics company Gen-U-Tech, the Scarab Corporation robotics firm, and the television franchise Pack Media Studios. Due to his father's belief that his fortune was unearned, their relationship became strained. Being worth $20,000 he sold the coin and invested the money into various stocks and founded Xanatos Enterprises. At a young age he received a letter containing a coin from the 10th century. Born to Petros Xanatos a fisherman from Maine.