For ESCs that can have their software changed- which is almost all of them these days- ROAR approves a software version for the ESC. The video states at 1:56 that the version being described is different from the ROAR-approved version. I would guess that the version number is different from the ROAR-approved version number: 21.11.171014A. Unfortunately I can't find anything on the Arrowmax web site regarding ESC software (or even the ESCs, for that matter) to verify that.

Tech for ESCs should always include a check of the software version, and ROAR does this at all of their races.

ROAR approvals also indicate the LED color and blinking rate for the approved version; in this case, "Blue LED, 0.60 seconds/flash". The video states at 1:26 that the number and colors of the blinking LEDs is different from the ROAR-approved version (and, judging from the video, the blinking rate is also different).

For local racing, making sure that the ESC is only connected to one receiver channel, as Bill mentioned, is a quick solution. Or the track could simply ban the ESC, as Andy mentioned. (Many tracks and major events did that when a certain motor was found to be out of compliance. It's not always necessary to wait for ROAR to make a decision, or even to use ROAR rules and approvals, although I believe they are the best-- and perhaps only ones-- available.)

Other ESCs on the ROAR approved list can also have timing changed from the transmitter, and don't require extra channels on the receiver to do so. But they do require receivers that support the communication protocol necessary to do that. These ESCs are ROAR-approved only for use with receivers that don't have that capability.

Finally, the video was made well after the ROAR-approved software version was tested. I would guess that the software in question was created after the approved version was tested.

Blinky =/= same. The last true spec race I ran my car would pull ~4 car lengths on anyone else. Everything was 100% legal. I've had trucks/motors disassembled and checked after races. Having the best of the right equipment and building a car to be fast makes a difference.

One thing I forgot to mention is that for our race here, we limit the KV on the motor and the voltage on the batteries so it gives a somewhat even playing field for everyone. Takes the electronics out of the equation so the race isnt dependent on whoever has the deepest pocket to buy the best motor but have it come down to your setup and driving.

So to have someone pull call lengths on you down the straight on these rules is very suspicious.

This esc is meant for racers who wants to form a special class that can use turbo everytime is needed during the race.... I guess the class can be called 17.5 Blinky with unlimited turbo boost.... Sounds fun especially on the straightaway.... It's like a video game...

KV is just one measure of output and makes it that much more important to have the right motor. If you were all running the exact same motor it would be one thing, limiting it to a turn and max KV is another.

Most of the people I've found cheating over the years don't win, or don't win more than once or twice before someone catches them.

The problem is the OP said these guys are using this in a specific no timing class. The esc gives 30 seconds of timing added, which is kind of like the old kers system in F1. In a class where everyone had the same esc it would be ok, but it seems people are inclined to abuse this.
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Is just running mod class a solution? It all just seems so much simpler to me...