(Thunderbolts I#60 (fb) - BTS) - American mercenary Lloyd Bloch came across a mysterious alien gem that incorporated itself into his body, granting him various superpowers.
(Thunderbolts I#62 (fb) - BTS) - After Earth's heroes left Counter-Earth Franklin, the planet suffered a series of natural disasters that led to global catastrophes. The problems didn't end even after Doctor Doom shifted the world from its pocket dimension to Earth-616's solar system. Throughout the ongoing crises, Germany remained one of the few nations that managed to maintain a thriving economy. As a result, the European country quickly rose to power and prominence.
(Thunderbolts I#62 (fb) - BTS) - Hoping to capitalize on Germany's newfound importance, the World Party took center stage, now claiming to be a political alliance with tentative ties to, among others, France and the United States. Baron Heinrich Zemo was tasked to head up an elite team of super powered operatives.
(Thunderbolts I#60 (fb) - BTS) - Zemo founded the Thunderbolts: a group of international heroes operating out of Germany, but fighting for all of Earth. With himself as leader and his son Helmut in the Iron Cross combat armor, he recruited Bloch, now known as Phantom Eagle and his fellow American mercenaries Makeshift and Solarr. France's heroine Chain Lightning was the final member of their group.
(Thunderbolts I#62 (fb) - BTS) - The Thunderbolts operated together for at least eight months. Zemo assured the allegiance of Phantom Eagle and the others by making sure they lived in the lap of luxury.
(Thunderbolts I#62 (fb) - BTS) - Phantom Eagle and the other Thunderbolts were more than willing to help Baron Zemo spearhead a World Party approved plan to give Germany world dominance. The country planned to launch a satellite they claimed would help restore the global communications network. In reality, the satellite was designed to only allow Germany access, which would give nation unprecedented control over the world economy.
(Thunderbolts I#61 (fb) - BTS) - The Thunderbolts used their individual powers and expertise to help construct the rocket. Phantom Eagle's phase shifting made it easier to move in and out of the construct.
(Thunderbolts I#60 (fb) - BTS) - Phantom Eagle joined Zemo and the others on a mission to the former Soviet Union where they had to locate and secure a prototype fuel injector assembly for the rocket.
(Thunderbolts I#59) -
While in Russia, they came across the unconscious bodies of the
Thunderbolts who had just been transported to Counter-Earth following
their fight against Graviton.(Thunderbolts I#60) - Phantom Eagle stood back, allowing the paranoid Zemo to question the newcomers who he believed to be mercenaries sent to thwart their mission. The Fixer tried to buy time for his teammates to recover, using the weapons in his Tech-Pac to keep the Thunderbolts at bay. Moonstone managed to defuse the situation by claiming they were merely hired hands sent by the World Party to check if the Thunderbolts were doing their duty. Satisfied with this explanation, Zemo allowed them to leave.
(Thunderbolts I#60 - BTS) - Zemo's Thunderbolts retrieved the fuel injector and returned to Germany. When Earth's Thunderbolts learned of Germany's upcoming launch, they decided to hijack the rocket and use it to leave Counter-Earth.
(Thunderbolts I#61) - Zemo's Thunderbolts continued to work on the rocket after returning from the Soviet Union. Iron Cross overheard Solarr and Makeshift openly discussing the true nature of the rocket's payload and forcefully set them straight. All of them were oblivious to the fact Zemo had listening devices planted on each of them, making him well aware of their activities.
(Thunderbolts I#62 (fb) - BTS) - Earth's Thunderbolts made it from Russia to Germany hours before the rocket launch.
(Thunderbolts I#62) - Moonstone, using fake press credentials created by Fixer, interviewed Phantom Eagle on the base. He took a liking to her, which she used to get more information out of him. They agreed to meet for a dinner date after the launch, causing Phantom Eagle to fly off happy and totally unaware Sofen felt this version of Bloch was a fool as well.
(Thunderbolts I#62 - BTS) - 46 minutes before the launch, the Fixer abandoned his allies to carry out a mission for Helmut Zemo whose digitized essence was stored inside his Tech-Pac. Zemo had threatened to shut down the Tech-Pac's life-preserving systems if Ebersol didn't find him a new body.
(Thunderbolts I#62) - After entering the facility, Fixer used gas to cause a distraction. He briefly disabled Phantom Eagle by scrambling his phasing powers which left him vulnerable to the same electrical attack that took out Chain Lightning. Iron Cross attacked Fixer from behind, but that only gave Fixer the opening he needed to start transferring Zemo's essence from his Tech-Pac to his new host. He was forced to retreat when Phantom Eagle and the others recovered. They pursued him, but the Thunderbolts helped out their teammate, with Moonstone and Atlas joining forces to make short work of Phantom Eagle.
(Thunderbolts I#62 - BTS) - The rocket launch went ahead as scheduled, but Earth's heroes made sure it exploded before it could deliver its payload. MACH-3 and Fixer then put out a worldwide broadcast, revealing Zemo and Germany's deception. The surviving members of Zemo's Thunderbolts were presumably incarcerated (see comments).
(Thunderbolts I#65 (fb) - BTS) -
Phantom Eagle managed to escape custody. He made his way to the floating
city of Attilan, the former home of the Inhumans recently commandeered
by Zemo's Thunderbolts as their new base of operations.(Thunderbolts I#65) - Phantom Eagle was hiding out among the thousands of refugees the Thunderbolts had brought to Attilan, observing the team as an anonymous member of the crowd.
(Thunderbolts I#68 (fb) - BTS) - Bloch remained on Attilan for weeks, unaware his alien power gem was slowly frying every synapse in his brain whenever he used his phasing abilities. As a result, he grew insane, developing multiple personalities and an obsession with Moonstone. When he believed he was making love to her, he was horrified to learn he had actually raped an innocent woman who died when he phased her partly through a wall.
(Thunderbolts I#68 - BTS) - When the Thunderbolts learned of the murder in Attilan, they became personally involved in the investigation.
(Thunderbolts I#68) - The delusional Phantom Eagle began to shadow Moonstone and Dallas Riordan who was using her past experiences as a police detective to lead the investigation. Using his phasing powers to stay out of sight, he decided to attack Dallas when she was about to uncover the truth. However, he was ill prepared for her to turn into the ionic Atlas and retreated.
(Thunderbolts I#68 - BTS) - Moonstone came up with a plan to capture Phantom Eagle, correctly deducing she was his true target. Sofen had the Fixer whip up a scrambler that could disrupt the powers of their moonstones for a few seconds. Since she had more experience with the alien powerstone, she figured she would be able to recover quicker.
(Thunderbolts I#68) -
Moonstone lured Phantom Eagle out into the open and used the Fixer's
scrambler device on him. As expected, she was the first to regain
control over her powers. She then used hier phasing abilities to rip the
moonstone from Bloch's body and immediately added it to her own.(Thunderbolts I#68) - Moonstone went to see the depowered Bloch who was being held in a cell. She told him he was free to leave: this world needs workers, not prisoners.