So it was exposed that Silver framed Kreese for the assault on Stingray at about the same time Kreese escaped while assaulting two guards and a doctor. So instead of just getting released, he now faces at least three actual charges.
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That would have been interesting to see more of, I think he genuinely cared about all his Cobra Kai kids, especially Johnny back in the day. He just has a very rough and harsh view of the world. I actually like that he has escaped from prison. He is not one to sit back and wait for others to do things for him.
Although yes, if he had of waited he would be released and would be able to sue for false imprisonment as well as suing Silver.
I assume it will explained in season six that he was arrested, but under the circumstances he just has to serve probation. He has to be the villain next season right? what else can they do? I hope it just isn't them going to the Sekai Tekai.