When Hugo Strange quarantined off part of the city as 'Arkham City', Zeus' old nightclub, the Gotham City Olympus, was located on the property. The Riddler would later make the room the answer to one of his riddles, and Batman was forced to find and detonate the wall hiding Zeus' room in order to locate and capture Nigma. Some time afterwards, the Arkham Staff sealed the wall to his room- leaving the strange Greek and Egyptian symbols Zeus had scrawled on the walls in place.
After one too many rounds of this painful torture, Zeus simply disappeared from the Asylum, leaving many to believe that Sharp and the Arkham staff had gone too far and killed him, silently disposing of the body. In Asylum, Maxie Zeus found no rehabilitation as he was victim to continuous shock therapy treatment at the hands of Quincy Sharp.
Zeus' crime and madness earned him the attention of Batman, who defeated him and brought him to Arkham Asylum to deal with his mental condition.