I'd never seen it either! I've spent considerable time on Google trying to ID it, with no luck. My local fish store got several pieces on something, and offered me a 'clump' for free (and you KNOW that is motivating!).
Of course, as soon as I got home I started to have doubts and in fact have yet to add it to any tank. They've had it for several weeks now, and they seem to be stable there in a live-rock-only tank.
I am concerned about it collapsing and fouling the water, and of any toxins it might release then or before. Better safe than sorry.