Hatch was convicted in Rhode Island in January 2006 of failing to pay taxes on the $1 million prize he won on the debut season of the hit CBS show. He was sentenced to four years and three months.
Officials say Hatch left the federal prison on Monday and is now being held in a halfway house in Pennsylvania.
Carla Wilson, a spokeswoman for the Northeast Regional office of the Bureau of Prisons, says Hatch is expected to be released from the halfway house Oct. 7.
Hatch has maintained his innocence.