Yea, we were fighting him, but he was just being a d-bag, and the two sides basically agreed to work together to try and free Cape City. Then Penance and his followers helped the GT get the Gold Crystal, while also starting a revolution up top in the city. Right now, they're all trying to leave the area down there as the Sentinels discovered where they were located and are heading there now.
Also Penance, TrueStriker, Vigil and a group of Psychics under Penance tried to free a Sentinel (Deluge) from the Silver Crystal's power with their newly acquired Gold Crystal. It somewhat worked, but not before some crazy smoke thing basically killed him. That was in my last post if you wanna check it out. Basically, Cape City is on the verge of war. I figure once all of the action starts, that might be a good spot for you to jump back in, assuming you can.