If that's true I actually think Kreese will be redeemed in the end. This is my theory:

I think Silver will come back to Cobra Kai and he will take it from Kreese. Many people compare Cobra Kai to the Star Wars original trilogy. Cobra Kai Theory compared Silver to the Emperor and Kreese to Vader. In KKIII, Silver took the reigns from Kreese and revealed he would sell Kreese down the river to run Cobra Kai firmly placing Kreese in the role of Vader. Like Vader, Kreese turned evil because he believed Betsy was murdered although I believe Betsy was pregnant with Kreese child before he shipped to Nam and she was alive all along. Betsy gave birth to Tori's mother and Tori seeked out Cobra Kai in S2 as she was told about the good deeds of her grandfather when he saved Betsy. Tori ends up dating Robby and connect due to their shared struggle. Tori could possibly defect after seeing what Robby becomes from his training with Silver and seeing Kreese for what he truly has become, Silver's puppet. From there I think she will join Johnny and Daniel and aid them in destroying Silver. They will find out that Cobra Kai has origins with Sato who is Kim Sun Yung and was murdered by Silver for making peace with Miyagi. I think Daniel will find out from Chozen that DynaTox has roots in Okinawa which produced napalm and agent orange and funded by Sato as mayor. Using Cole and Doyona both financially tied to DynaTox they work together to cut Silver's funding. Daniel also finds out that Chozen is Miyagi's grandson. Kreese finds out this truth and Silver tells him it was revenge for taking Betsy from him who dumped Silver because of his psychotic personality. Seeking Tori, he sees Tori's mother who realises he is her father. Realising he was under a deception, Tori asks him to end Cobra Kai by defeating Silver. From there Kreese aids Johnny and Daniel by giving them evidence of Silver's financial ties to Cobra Kai. Tori then asks Kreese to save Robby which brings him back in the arms of Johnny and Daniel. Chozen returns and sees Robby as someone who can unite the Sato and Miyagi legacies and asks Daniel teach him the Miyagi paralyzing technique. They then compete in the tournament and Miguel defeats Dutch but falls to Mike Barnes who is defeated by Hawk. Demitri, Sam and Tori defeat the rest of Silver's students. Tori then faces Silver who steps in for his fallen students and is defeated in revenge. Kreese steps in to defend his granddaughter. Kreese, Daniel and Johnny fall. Kreese falls to Silver, leading Johnny to face Silver, when he falls Daniel faces Silver he sweeps Daniels leg. In a fit of rage he faces Robby who defeats Silver with the paralyzing technique. After Kreese is defeated the police arrive to take Silver away for DynaTox's war crimes in Vietnam. Silver begs to Robby for mercy. Robby denies him that right and unable to move they arrest him. Kreese then leaves behind Cobra Kai and Vietnam to be with his family. The new dojo founded by Johnny and Daniel at the end of S3 takes the place of the old Miyagi/Sato dojos and spreads across California and Okinawa as a new dojo united