By breaking it down you've made it easier to read.
While the backstory is passable (I am no good at writing decent histories/backstories myself I might add), it starts with a glaring cliche, this isn't necessarily a bad thing, it just has that; "heard it before feel".
The part about the sculptor and its creation is fine.
The last part still raises some questions for me: How did Ytinutroppo know about its creation?, what is this loophole that he forgot to cover?
Also, this line doesn't make any sense to me: "(he's so powerful he doesn't need to show off with a ...the bloody)."
As it stands it is ok, but could still do with some more work being done. Take your time when creating something, there is no rush.