I agree it's a eunicid - I recently removed one and all corals that were closed or sulking before opened up again, no more disappeared frags and small fish etc.
They grow immensely huge generally and will start bothering your livestock in the long run - if you want to keep the worm put it into a refugium or extra tank. They can be very interesting animals but due to their behavior (building a nest, redecorating the tank, having a large appetite) they are definitely the opposite of reef safe.