Chronic Dev Team is putting finishing touches on what is set to become the world’s first untethered jailbreak solution for iOS 5 and 5.0.1. Team member and French hacker pod2g just released this video showing off the jailbreak, which appears to be near-complete and functioning properly.

Unlike tethered, untethered jailbreak does not require that the device be connected to a computer each time it needs to be booted. It appears you won’t be able to untether with iOS 5.0.1 using Chronic’s tool, but pod2g did confirm that the iOS 5 untether will work on iOS 5.0.1:

Tons of questions from my nice followers. Too early to answer. Will work on iOS 5.0.1, will try iPad 2 and 4S after others are ready.

First indication of a possible untethered iOS jailbreak came in pod2g’s tweet last month:

Hey jailbreaking friends, I’ve found a bug that can untether iOS 5. Don’t expect a release soon, but I’m gonna work hard in it.

There was no word on availability of the solution at post time, but we reckon that it will be sooner than later.

Chronic Dev Team explained in a recent blog post that Apple patched the jailbreak-prone exploits found in iOS 5 betas with the release of the golden master build in mid-October. The company is apparently using their iTunes-based crash reporting system in order to find jailbreak exploits before they are released into the wild. If you’re into jailbreaking, you should consider iFaith, a Windows application that circumvents Apple’s restricted downgrade system which prevents people from downgrading their devices to an older iOS 5.x firmware. The program permits unsigned user restores based on dumped iOS 5 signature hash blobs. Additionally, it’s possible to restore to iOS 5.0.1 and preserve iPhone 4 baseband by dumping the blobs with iFaith first.

9to5Mac does not take a stance on jailbreaking, hacking, or this software , we are just reporting this as news.

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