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Dr. Karl Kraus was a double agent for Hydra working within S.H.I.E.L.D. alongside Robert Rickard in an attempt to ruin Fury's reputation with the organization by feeding them false information that he was a traitor.[2][3]

After Rickard was killed by Fury he was sent to prison by S.H.I.E.L.D. and became a wanted man after escaping prison. Fury seemingly regained partial trust after defeating the Super-Patriot.[4]

Fury was recaptured and brought to the S.H.I.E.L.D. Helicarrier where Dr. Kraus put him through the Psycho-Projector for two weeks in attempt to prove Fury's loyalty using his own mental projections regarding the incident with the Super-Patriot. Inside the machine Fury saw himself removing the mask of the Super-Patriot and upon doing so seeing his own face on his body. Kraus diagnosed that the scenes Fury was projecting and the thoughts he had meant that Fury was harboring doubts that he was too old for the position of director and that he was afraid of becoming an ultra-rightist.

When Dr. Kraus became too insistent on the continued surveillance of Nick Fury's loyalty after he killed Agent Rickard, Agent "Dum Dum" Dugan informed Kraus that he had dug into Rickard's history and found out that he was a Hydra agent and that he and Kraus had many secret meetings with one another. Kraus seeing the writing on the wall used some gas and exposed himself as a Hydra agent before fleeing in order to try and assassinate Nick Fury. Kraus failed his assassination attempt and was forced to flee the Helicarrier altogether using a jetpack in an effort to save his own skin.[3]

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