Arcana was a great magician with a great life and a wonderful fiancée named Cathrine. But all that changed due to a freak accident in a magician's act. The accident messed up his face along with his dazzling career. Arcana's fiancée stood up for him, but he wanted her to leave him since he thought that no woman deserved him anymore, due to his horrible face.
Left with nothing, Arcana accepted Marik's offer of help. Marik told Arcana if he could defeat Yugi in a duel that he would persuade Cathrine to go back to him using the Millennium Rod. Arcana agreed and dueled Yugi in a duel with Magicians.
Both of the duelist's decks were based on the Dark Magician. Arcana treated his monsters cruelly, like destroying them to get him to victory. Yugi then taught Arcana his lesson by using his own tricks against him and summoned Dark Magician Girl which had 2600 attack, stronger than anything Arcana had in his deck at the time. Yugi beat Arcana, then Marik took over Arcana's mind to warn Yugi about the silent one.
Despite his lost, Arcana had a key on his person but a disappointed Marik took over Arcana's mind and made it seem like the key had disappeared. Yugi managed to save Arcana, but the man is 'punished' by Marik, cuddling the mannequin that "Catherine" really was. But Marik revealed to Yugi his intention to take the Puzzle from him (as dueling is the only way he can get it) and told him the Quiet One would get the job done.