I'm not certain of this, but I think since #70 was announced as eligible, he should have been on the outside instead of #68. This might be where the illegal formation thing is coming from. The 2nd penalty stems from #68 catching the ball when, according to the refs, he wasn't 'eligible'. I'm sure I'm repeating things that have already been pointed out numerous times, so apologies for that.
I've watched the video a dozen times and I don't see the ref looking at #70 as he approaches the initial conversation between #58, #68, and the ref. The ref had already started walking away before #70 even gets there. So I'm trying to understand how the ref announced #70 as eligible when he wasn't part of the conversation.
My opinion? I think this was totally on the ref's. Audio between #58, #68, and the ref before #70 walks up would certainly clear it up, but that doesn't exist. Only the ref announcing #70 as eligible is there.