Sorry for your loss. Formalin is not a recommended treatment for velvet (Amyloodinium ocellatum). Copper or chloroquine phosphate are the recommended treatments. As indicated above, you need to treat your remaining fish soon, or they will succumb to the disease.
Chloroquine phosphate is the preferred treatment but sourcing it sometimes takes a relationship with a vet. Copper will work but be sure to match the test kit with the manufacturer.