What happened to the drugs in no country for old men?

Answer 1

"The sheriff took the money and retired."

This can't be true. We see him leave the El Paso motel room without it. In the novel, Chigurh took it and gave it back to a third party. In the film, it is left unclear, but Chigurh has taken the grill from the vent out so he could have found it there and been surprised by the sheriff before he could leave. He gave the boy on the bike $100 for his shirt in the same way that Moss had earlier.

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The second answer is correct. To add upon it, Chigurh took the money to someone the novel only describes as "the man", presumably a very rich individual as he had provided the $2.4 million for the purchase of the Mexican drugs. Chigurh even had enough respect to show up in a suit and tie as he met this "man" at his office. Chigurh gave all of the money back to him, minus what was already stolen by Moss and minus some expenses Chigurh had to do. Total there remained about $2.2 million given to this "man".

Chigurh had done this because it was implied that he was interested in "working" for this man, to who knows to what extent but presumably in a line of work that Chigurh is already so good at (only with guaranteed work now), and this act would've definitely sealed the deal.

Answer 2

Yes, Moss was shot and killed by Well Dressed Mexican, who had heard from Carla Jean`s mother, that Moss was going to El Passo meet Carla Jean.

Answer 3

two million dollars in drug money that he finds in an open field in Texas.