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So when we see Itachi and Shisui in the past, Shisui is the one who asks the 3rd hokage about trying to divert the Uchiha Coup on his own for which he get's approval by the third Hokage at which Danzo was also present.

When Shisui tried to use genjuitsu on his clan, he's intercepted and attacked by Danzo, surely the hokage didn't approve of that. Shisui was able to tell Itachi of what happened, but why didn't Itachi tell the Hokage about Danzo's betrayal?

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    Itachi was a pacifist. He didn't want to tell irrelevant things to Hiruzen and further create an internal issue among the village officials. – Ero Sɘnnin May 10 '18 at 15:50
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He should have.But Itachi knew that since Shisui was dead,there was no other option but to murder the entire clan-he did not want to draw unnecessary attention now.He just wanted peace.He could have even avenged Shisui by finishing off Danzo but he didn't do that.

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This is a speculation, but given that Danzo was the head of ANBU Black ops, it is most likely that they don't leave any trace whatsoever that can be tracked back to Danzo. Thus the only "proof" of Danzo attacking Shisui would be Shisui's own testament and Itachi's second hand testament. And given that Shishui's genjutsu, "koto amatsukami" is a complete hypnosis, who would believe Itachi?

Danzo can just claim that Itachi is under Shisui's genjutsu and that Shisui did that to blacksheep him. Danzo is a high official. Accussations towards him without any proof would result in heavy retaliation. Especially since by that time the Uchiha clan is already suspected of planning a coup.

This, I think, is why Itachi cannot tell Hiruzen. It would not solve anything. It will only smear Shisui's good name.

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Hiruzen would have believed itachi, as hiruzen knows how shady danzo is and as soon as all the Uchiha’s were massacred, hiruzen quickly deduced that Danzō was responsible.

Itachi didn’t tell hiruzen because there was no point, itachi would still have to murder his clan.

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