Loki operates as an Eastern Bloc intelligence agent within a prolonged Cold War setting. Originally named Paul Hoffman, he is the younger brother of Western Bloc agent Mylene Hoffman. Their family's attempted defection from the East ended in capture; Western soldiers took Mylene while Eastern forces secured Paul, forging their separation and paths as rival spies.

He exhibits exceptional calmness and analytical skill, remaining composed under extreme pressure. Loki displays sharp strategic thinking and advanced physical capabilities, earning recognition as his sister's Eastern counterpart. His operational style prioritizes precision and psychological control.

A pivotal moment occurs during the haunted castle mission, marking his first direct encounter with Mylene. Neither recognizes their sibling connection during the operation. The revelation of their kinship emerges later, profoundly altering their dynamic. In the manga, this discovery leads Paul to suicide upon realizing their intimate encounter constituted unintentional incest. The anime adaptation merges Paul with another Eastern agent, Charles Abner, changing this outcome.

Loki's arc culminates in a joint plan with Dr. Green to use psychic mutant children as unwitting pawns against both power blocs, aiming to destroy the existing world order and enable mutants to establish a new society. His motivations blend genuine concern for the persecuted children with extremist methods, casting him as a well-intentioned extremist. The anime concludes ambiguously regarding his fate following this conflict, employing the "never found the body" trope.

The 2013 live-action film *009-1: The End of the Beginning* adapts this storyline. Loki appears under the alias "Loki Laufeyson" and deliberately engineers a reunion with Mylene by posing as a rescue victim. Their familial revelation occurs at the climax when he identifies himself as Paul before Mylene kills him. This film maintains the core sibling dynamic while streamlining narrative elements.