Re: Clarification please
During the reign of Yagura, the Fourth Mizukage, Kirigakure began using a new graduation ritual for their academy: death matches for students who wish to move on into the ranks of ninja. This act earned the village the infamous nickname "Village of the Bloody Mist" (血霧の里, Chigiri no sato). Students who did exceptionally well during the graduation became prime candidates for the Seven Ninja Swordsmen of the Mist, a group of ninja skilled with bladed weapons. Though this practice was eventually discontinued after Zabuza
Momochi slaughtered his entire graduating class, Yagura's term as Mizukage caused great turmoil for the village: ninja began craving power and taking part in questionable activities in Zabuza's case when he attempted to assassinate the Mizukage. Kisame Hoshigaki, a member of the Seven Swordsmen who was disillusioned by the corruption, was among those who knew the truth that Yagura was being influenced by Tobi yet sided with the masked ninja and eventually defected after he tried to overthrow the government and assassinated several officials.
Because of this association, many believed the Akatsuki was created in Kirigakure rather than Amegakure. In the anime, ten years before the Shinobi Alliance was formed, it was revealed that Kirigakure bore a grudge against Iwagakure for the event known as the Tragedy of Yosuga Pass where the Iwa ninja caused the deaths of Junsai and Suiren to take an important scroll that the Iwa ninja helped them and Ganryū steal from Kumogakure.
Kirigakure had two tailed beasts in its possession: the Three-Tails and the Six-Tails. The Three-Tails was sealed within Yagura, though by the time Akatsuki went after it, it was roaming free. The Six-Tails' host, Utakata, was captured and had his tailed beast extracted by Akatsuki. Utakata's capture is the subject of its own arc in the anime.