There's a reason why he's bathing in golden water. There's also a reason why his arms are faded black with what looks like ink coming out of him.

The water is a creation from Sloth, the god of healing. It's purpose is to restore the body as well as purifying it.

The blackened parts of his skin is an indication of injury. His hands were chopped off by followers of Greed who were trying to capture him and bring him to their god.

He escaped but with his hands severed, bruised body and black blood coming out from his mouth. Luckily after escaping, he found one of Sloth's waterfalls to bath in which restored his hands, stopped his bleeding and clear his bruises.

The followers of Greed brung their god the hands which were cut off and then Greed took those severed hands as trophies.

The violet smoke is a drug the Illusionist created which he's immune to.

Any questions for this? I would explain why Greed wanted the Illusionist to be brought to him but that part of the story is so long and complicated it would take a book.