On Thursday night, Mr. Cohen’s lawyer, Roger B. Adler, said that, after two weeks in quarantine, his client would be granted release into home confinement because of the virus risks.

Prosecutors declined to comment on the agency’s decision to let Mr. Cohen serve his sentence at his home in Manhattan, which was reported on Thursday by CNN.

Lawyers for at least six other inmates in the Otisville camp said their clients also had been informed they would be furloughed to lessen the possibility of their contracting the virus. Some were told they would finish their sentences in home confinement. Others were told they were being furloughed to home confinement, meaning they might be required to return to the prison camp.

One defense lawyer, Steve Zissou, said his client was informed that “the entire camp was told last night to ‘pack up — we’re shutting down the camp.’”

Mr. Taylor, the prisons spokesman, on Friday morning denied that the site was being shuttered. “It is not true that the camp is closing, nor is it true that all the inmates at the camp are being moved out,” he said.

Defense lawyers said Mr. Cohen and the other inmates were told they would be held in quarantine at Otisville’s medium-security prison for 14 days to ensure they do not have the virus before being sent to their homes.

On Friday afternoon, a Bureau of Prisons spokeswoman, Susan Allison, acknowledged that the camp inmates were being moved to the medium-security prison and would be screened for eligibility for home confinement. She said all were being preemptively quarantined in case they qualify.