The Blooded are not native to their area of influence and rumors hold that they are refugees from an area of the realm controlled by Illithids. The Blooded took their name after a betrayal by their gold and shield brethren with the phrase “Even blooded we are greater than them.”

The Company of the Gaeta incidents
After a dwarven lord called a conclave of dwarves to search for old relics, the Blooded murdered the lord and stole several artifacts from him. After this attack the Blooded launched a campaign of terror, assassinating dwarves and anyone else in the general area

The Sacking of Bel Boldohr
In the year 765 dwarves from Kinaro and the outlying regions assaulted and sacked the fortress of Bel Boldohr. The attack is estimated to have killed approximately 400 Blooded, including one of their most powerful psions, Bharrom Cravenhand.