A few hours ago, Chronic Dev Team member @pod2g tweeted a link to a YouTube video which successfully demonstrates the upcoming untethered jailbreak for iOS 4.2.1. The video shows an untethered jailbroken iPhone 4 running iOS 4.2.1 but we presume that the same untether should work with iPod touch and iPad as well. It appears that this would be released publicly as a greenpois0n jailbreak tool update, though no ETA has been given yet.
Update: greenpois0n RC5 for untethered iOS 4.2.1 jailbreak is now available. See more here
The following was tweeted by @pod2g:
https://www.youtube.com/watch?v=C5qNray7FHU < I really don’t know what’s funny about this. You do ?
It is highly likely that this would be released when Apple launches iOS 4.3 since If they reveal the untether exploit now, Apple may patch it in iOS 4.3. So stay tuned and we’ll let you know the moment it is released to public. Meanwhile, checkout the following untethered iOS 4.2.1 jailbreak video: