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The Crown of Karsus was created by Karsus, an archwizard from the Faerûn empire of Netheril. The crown holds all the powers of magic. Anyone who wields it will gain powers equal to a god. The crown was taken by the archdevil Mephistopheles and held in a vault for more than a thousand years. This was until someone managed to steal the crown from Mephistopheles and bring it back to Faerûn.
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Three stones were removed from the crown and distributed between three chosen. Through the power of the stones the chosen can control whoever wears the crown, and the power that comes with it. At this point the game of Baldur's Gate 3 begins.
External Links
Karsus on the Forgotten Realms Wiki
Netheril on the Forgotten Realms Wiki
Karsus' Folly on the Forgotten Realms Wiki
Mephistopheles on the Forgotten Realms Wiki