Yes they molt and he should regenerate the lost tail p[iece over a few molts at most. How big is it? I agree with js. You'll need lots of space to keep it and it will bulldoze your rock work if it doesnt have enough room. Is it male of female?
also, keep your flow low, or angle your powerheads away from the bottom, or else you'll see swimming horseshoe crabs (which may not end well if they get stuck somewhere)
If you have a reef tank, I would make sure that things are securely fastened because they are pretty strong and as mentioned above grow large and will knock over rock work, corals etc.
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