Default.  Is a failure to honor the terms of a debt obligation.  On 08/17 "investors" attempted to make withdrawals.  The terms of the BTCST were than accounts could be drawn on demand.  Pirate failed to pay out those investors.  He also failed to make any interest payments for the next two weeks.  Under any possible definition of the term BTCST defaults 08/17 when it couldn't honor the terms of the "investment".

Try this on for size.  Don't make your mortgage payment instead call the bank up and saying you are closing the mortgage.  When the bank asks when you will be paying off the balance tell them you are stopping all interest and will pay them when you get the money.  Also be sure to let them know you aren't in default until you tell them you are in default.  Let me know how it works out.

Pirate admitting default 2 weeks after the fact doesn't change the fact that he was already in default the day he couldn't meet the terms of his obligation to creditors.