Fed court, but the power of the pardon is not restricted to the best of my knowledge.
He was convicted of federal charges in federal court, so Obama is free to pardon him as he is leaving office.
Presidential pardons are authorized by Article II, Section 2 of the U.S. Constitution:
The President ... shall have power to grant reprieves and pardons for offenses against the United States, except in cases of impeachment.
The President has no power to pardon someone convicted of state charges in state court. Except for Obama, of course, since Obama is above petty little things like laws.