Terry Crowley's Murder
When Terry Crowley—an undercover informant sent out from the Justice Department to expose corruption in the Strike Team—was murdered by Vic, Shane was the only witness. The other 2 members of the Strike Team were oblivious of the fact that it was Vic who murdered Terry until Season 6, when Shane had compiled a list of all their crimes to use as blackmail against Vic. Ronnie Gardocki angrily confronted Shane about the list, as his name was implicated, and it was at that time that Shane told him about Vic murdering Terry. Curtis Lemansky had suspicions of Vic murdering Terry, which Vic denied, till his struggle with Vic in Season 5 where Lem was wired by Kavanaugh where Lem disconnected the wire and learned the truth from Vic. Early in Season 1, Shane was clearly distressed about what he and Vic had done. This was most evident at Terry's funeral, where Shane was visibly shaken by seeing Terry's mother. As time passed, he was seemingly able to move past it, and accepted the murder in his mind as being something that was necessary. When Vic expressed regret about the murder in Season 5, it was Shane who reassured him that he had done it to protect the team.
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