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Melkor's creatures
At that time did many strange spirits fare into the world, for there were pleasant places dark and quiet for them to dwell in. Some came from Mandos, aged spirits that journeyed from Ilúvatar with him who are older than the world and very gloomy and secret, and some from the fortresses of the North where Melko then dwelt in the deep dungeons of Utumna. Full of evil and unwholesome were they; luring and restlessness and horror they brought, turning the dark into an ill and fearful thing, which it was not before. But some few danced thither with gentle feet exuding evening scents, and these came from the gardens of Lórien.
J.R.R. Tolkien, Christopher Tolkien (ed.), The Book of Lost Tales Part One, "IV. The Chaining of Melko"
But in the north Melkor built his strength, and he slept not, but watched, and laboured; and the evil things that he had perverted walked abroad, and the dark and slumbering woods were haunted by monsters and shapes of dread. And in Utumno he gathered his demons about him, those spirits who first adhered to him in the days of his splendour, and became most like him in his corruption: their hearts were of fire, but they were cloaked in darkness, and terror went before them; they had whips of flame. Balrogs they were named in Middle-earth in later days. And in that dark time Melkor bred many other monsters of divers shapes and kinds that long troubled the world; and his realm spread now ever southward over Middle-earth.
J.R.R. Tolkien, Christopher Tolkien (ed.), The Silmarillion, "Quenta Silmarillion: Of the Coming of the Elves and the Captivity of Melkor"
Yet many of the Quendi were filled with dread at his coming; and this was the doing of Melkor. For by after-knowledge the wise declare that Melkor, ever watchful, was first aware of the awakening of the Quendi, and sent shadows and evil spirits to spy upon them and waylay them. So it came to pass, some years ere the coming of Oromë, that if any of the Elves strayed far abroad, alone or few together, they would often vanish, and never return; and the Quendi said that the Hunter had caught them, and they were afraid. And indeed the most ancient songs of the Elves, of which echoes are remembered still in the West, tell of the shadow-shapes that walked in the hills above Cuiviénen, or would pass suddenly over the stars; and of the dark Rider upon his wild horse that pursued those that wandered to take them and devour them. Now Melkor greatly hated and feared the riding of Oromë, and either he sent indeed his dark servants as riders, or he set lying whispers abroad, for the purpose that the Quendi should shun Oromë, if ever they should meet.
J.R.R. Tolkien, Christopher Tolkien (ed.), The Silmarillion, "Quenta Silmarillion: Of the Coming of the Elves and the Captivity of Melkor"