Hey Leslie...

They do have some chemically active defensive cells in the skin but nothing like the toxic sea apples (Pseudocolochirus species) which really can nuke a tank. Euapta species are sold as reef-safe. Lots of people have them which I doubt would be the case if they had a reputation for toxicity. I suppose like with every species there's individual variation so some might be more a bit toxic than the rest. You might want to do a RC search and see if anyone has reported problems with their medusa worms.
 
Thanks for your input.

Some have reported tank wipe outs, while others have had good experiences. Considering all the work and $ I've put into my reef I think I'll err on the side of caution. Maybe I'll start another tank for a Medusa! I can hear the wife now... "Eeeeewww, what's that?" ;)
 
Maybe what you need is another wife, one that says things like "Honey, that's so cool!" or "We need to buy more critters for the tank" ;-D
 
She likes my fish and corals and loves my dardanus crab. She just has an aversion to worms and anything remotely snake-like.
 
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