In a recent tweet, @pod2g who is one the key members of Chronic-Dev Team, same guys who developed the Greenpois0n iOS jailbreak tool, has confirmed that their team is working actively on getting an untethered iOS 5 jailbreak out by the time iOS 5 goes public. Though he hasn’t given a timeframe or anything like that, he did make one thing clear (in reply to another tweet) that it will be released only after iOS 5 comes out of developer beta because revealing their work before that could lead to a possible exploit block by Apple in the final iOS 5 release.
For those who have been living under a rock for the past few months, iOS 5 is the biggest firmware update for iPhone, iPad and iPod touch devices till date and is scheduled for a release by the end of next month. It was first introduced at WWDC 2011 back in June with over 200 new features and its first beta was seeded to the developer community the same day. Since then, 7 iOS 5 beta releases have been seeded by Apple with a possible 8th beta or a GM release coming in the next few days.
As far as the iOS 5 jailbreak story goes, current versions of Redsn0w and Sn0wbreeze tools can both jailbreak it on supported devices i.e iPhone 4, iPhone 3GS, iPod touch 3G/4G and iPad, though it is only “tethered” at the moment which means you need to connect your device to a computer each and every time you re-boot or re-power your jailbroken device. iPad 2 is not supported at the moment.