The elves were the original keepers of the mortal realm, created by the Moraki long before humans. When they grew dissatisfied with the magic and world given to them, they challenged the upper-gods for more power and, as a result, ended up being stripped of what magic they did possess—though a few of them retained cursed scraps of divine-originated power.
Throughout history, the elves have worked to set themselves apart from humans (even creating their own separate realms such as Moreth and Mistwilde), and their grudge against the gods never truly went away. This grudge, combined with their vast knowledge of the gods after having walked with them for so long, led to the creation of several anti-divine artifacts, places, and weapons. Many also believe them to be responsible for the creation of the contraband, single-use magic crystals found throughout the empires.