That's not entirely the case. We do get a little bit of lore from Maidensbane and when upgrading the sword:
She mentions a mad Seafarer that supposedly died as said madmans ship was set ablaze by lightning. Her and her crew looted an item from the burning ship with which the King's Thunderblade can be upgraded. Upgrading the sword gives an inkling more insight on the possibility of the blade actually having the power to turn people mad.
At least when upgrading it to a catalyst.