"The downsides of this artifact are a lot worse than the upsides" - Jane describing the artifact's power.
An unprepossessing but dangerous artifact, the bracelet led to the creation of the Warehouse's troubles in Season 3.
It was first discovered when a young boy, Walter Sykes, suddenly gained the ability to walk even though he was paralyzed from the waist down.
However there is a high trade off for this gift. The bracelet enhances the malevolence inside a person's soul, planting what Mrs. Frederic calls a "seed of darkness" inside a person if not removed quickly enough. It hardens the heart and burns a hole that can never be filled. A sign of this malevolence is the pupils expanding to consume the iris, giving a person black eyes, from time to time. This continues even after the bracelet has been separated from a person. Jane also claims that the bracelet robs the person of their ability to feel love and accept love in return. Pete said that it basically turns you into the worst guy ever.
Carlo Collodi was actually much more bitter than history remembers him. In his original story, whenever Jiminy Cricket tried to tell Pinocchio what to do, he would whack him with a hammer.
The artifact also developed a bifurcated artifact like bond with someone who has worn it too long. Sykes claimed that the artifact was a part of him. Every-time he closed his eyes he could see it; he felt like there was a hole that only the artifact could fill.
The Warehouse became aware of the Bracelet shortly after the death of Pete Lattimer's father. Learning the artifact was in the possession of a child, Mrs. Frederic went to see Jane Lattimer to ask her to return to duty since she had a talent when it came to children and artifacts.
Carlo Collodi was the author of the original story of Pinocchio. However, unlike the familiar Disney version of the story, Collodi's story was darker and more cynical, as Collodi was, according to Artie, "a bitter satirist." The bracelet probably absorbed Collodi's emotions (as artifacts are known to do), thus causing anyone who wears it to become as wicked as he was.