Pegasus J Crawford is a major antagonist of the Yu-Gi-Oh series. He possesses the Millennium Eye, and can use it to read minds or trap people's souls inside cards. He is the American creator of Duel Monsters and the head of the Industrial Illusions company.
Pegasus was in love with a woman named Cyndia (Cecilia in the 4Kids dub), but she was killed by an illness. He searched for a way to bring her back, and found Shadi in the area where the Millennium Items were kept, discovering that with Kaiba Corp's technology and with all seven Millennium Items he could bring her back to life. Shadi gave him the Millennium Eye, saying that if he is destined for it, he will get to keep it, but if he is not, he will be condemned to eternal nightmares beyond his imagination. He was the one destined to possess the Millennium Eye, which replaced his left eye. He created the Duel Monsters card game based off the ancient Shadow Games people used to play in Egypt.
Pegasus then set out to collect all seven Millennium Items and take over Kaiba Corp. He was initially a good friend of Seto Kaiba, but soon attempted to take over Kaiba Corp by force, conspiring with the Big Five and kidnapping Kaiba's younger brother Mokuba when he was gone. Before he did this, he hosted a tournament called Duelist Kingdom in order to win Yugi's Millennium Puzzle. He defeated Yugi in a duel and trapped his grandfather Sugoroku's soul inside a card in order to get him to enter. The finals took place in Pegasus' castle, where Pegasus held Mokuba prisoner, and when Kaiba found him, he trapped his soul inside a card. Kaiba dueled Pegasus but lost, as his opponent could read minds with his Millennium Eye, and Pegasus imprisoned his soul inside a card.
After Yugi won the finals of Duelist Kingdom, he dueled Pegasus, and eventually gained the advantage against him by switching around between Yugi and Dark Yugi so Pegasus could not read his mind. However, Pegasus regained the advantage by taking them into Hell, which weakened Yugi and nearly killed him, but the power of Jonouchi, Anzu and Honda's friendship was able to overpower Pegasus' mind-reading power, and Dark Yugi defeated Pegasus. He released the souls of Sugoroku and the Kaiba brothers. He was then attacked by Dark Bakura, who defeated him in a duel using their Millennium Items, as he was tired from his duel with Yugi, and he took Pegasus' Millennium Eye. Pegasus was last seen being taken away by his men, who told Yugi and the others that he was ill.
Pegasus never returned until Season 4, Waking the Dragons, where he made a card for Yugi that would help him defeat Dartz (by turning the legendary dragons into knights), but he was defeated by Mai Kujaku, who was under the influence of Dartz, and his soul was taken by the Orichalcos. He was released when the Orichalcos God was defeated, and later appeared in Season 5 during one scene before Yugi's duel with Yami. It is interesting to note that the left side of his face (which once had the Millennium Eye) always remains hidden by his hair.